In the third quarter of 2024, observers noted a decline in the average MTPL premium for accident-free drivers operating vehicles with 121 to 150 horsepower. The reduction was evident among residents of the Altai Territory, Mordovia, and the Novgorod Region, reflecting how insurers adjusted prices in response to changing risk signals and competitive dynamics within the market. The 121-150 hp segment tends to sit in a mid tier where small shifts in claims experience or policyholder behavior can tilt quotes up or down. For accident-free drivers within this range, the lower average premium signaled a softer pricing environment through the quarter, while other areas showed different trajectories influenced by local loss experience and vehicle mix. Market watchers emphasize that regional patterns matter because they illustrate how local conditions such as road safety metrics, traffic density, climate, and vehicle fleets influence the pricing decisions of motor insurers. (Source: Russian Association of Automobile Insurers)
Alongside horsepower-based trends, premium-to-bad ratio (BMR) and the premium burden relative to losses remained a focal point. In Q3 2024, the MTPL policy cost for drivers with a BMR of 0.46 decreased by 7.4 percent from the same period a year earlier, signaling a tightening in risk pricing for a segment regarded as moderate risk. At the same time, the BMI of 1.17 for novice drivers rose by about 10 percent over the year, indicating that younger, less experienced operators still faced higher cost pressures in the market. These movements do not occur in a vacuum; insurers adjust pricing to reflect evolving risk profiles, inflation, and regulatory guidance, while aiming to preserve affordability for new drivers. The regional and engine-power mix continues to shape the figures, creating a mosaic of outcomes across the country. (Source: Russian Association of Automobile Insurers)
Engine power remains a meaningful driver of MTPL costs. Over the year, the average price shift favored lower-powered vehicles in some segments and higher-powered ones in others. Prices rose for cars with engines up to 50 hp while those in the 121-150 hp tier experienced a roughly 7.5 percent reduction on average. The regional picture supported extremes: the most substantial decreases appeared in the Altai Territory, Mordovia, and the Novgorod Region, whereas price gains appeared in Adygea, Trans-Baikal, and Kamchatka. This movement mirrors changing risk assessments and the ongoing influence of policy reforms and macroeconomic factors on auto insurance pricing. Earlier, the Russian Association of Automobile Insurers signaled an uptick in MTPL costs, reminding stakeholders that the price path remains sensitive to regulatory and market dynamics. (Source: Russian Association of Automobile Insurers)