Since mid June, revised guidelines for estimating the average cost of spare parts have been put into effect. OSAGO payments are now calculated in line with these guides, which reflect the current state of the spare parts market. The market has shifted after several car brands and parts manufacturers pulled out of Russia, and forecasts indicated that the price of commonly used spare parts would rise by roughly 30 percent during April and May.
Experts from the Russian Union of Motor Insurance pointed out that the forecasts were largely borne out by reality. The group noted that the cost of the basket of frequently replaced spare parts, when calculated under the new reference works, climbed by 28.7 percent compared to the figures in the previous edition of those reference works.
The updated manuals are designed to enable full restoration of vehicles damaged in accidents using new parts. It is worth noting that even before these guides became effective, the market saw a surge in the average OSAGO payout. In May 2022 the payment rose by 13 percent, or 8.5 thousand rubles, compared with May 2021, reaching 74.8 thousand rubles. Analysts expect the new guides to push prices higher, which could put sustained pressure on average OSAGO premiums over time, according to Evgeny Ufimtsev, executive director of the RSA.
According to sources, insurers prepared for higher repair costs in advance. They raised OSAGO policy prices ahead of the manuals entering into force, marking the first noticeable increase in a long period. This shift was likely influenced by the draft manuals being released for public comment. In the current climate, projecting policy costs six months to a year ahead remains challenging, given the accelerated changes in spare parts pricing and market dynamics.
- One notable consideration is the idea of not applying depreciation when calculating OSAGO payments, a concept that has already gained support from the Treasury.
- Further insights and updates on these developments can be found through industry reports and official communications [RSA] [Rossiyskaya Gazeta].