Starting September 13, the base rate for OSAGO across drivers is set by insurers within a corridor ranging from 1,646 to 7,535 rubles. For example, the corridor’s width may swing by up to 26% in either direction for most vehicle owners, according to a report from TASS based on a statement from the Bank of Russia. In practical terms, this adjustment means that some policyholders will see their premiums drop while others may face higher costs.
The Central Bank of the Russian Federation argues that widening the corridor provides room for insurers to reflect individual risk levels, especially in a market where spare parts prices are rising. Lowering the floor of the corridor can allow insurers to offer more favorable terms to drivers with lower risk profiles, while higher spare parts costs can affect those with greater risk exposure.
According to the regulator, this approach helps cap the overall rate increases for OSAGO by enabling greater price differentiation. Each driver pays in line with their specific risk, rather than a flat average. This strategy is not new: two years ago, the tariff corridor was widened by 10% in both directions, which coincided with a modest rise in the average OSAGO premium in 2021 compared with 2020. The policy landscape thus shows a recurring pattern of targeted adjustments to balance premiums with risk and market conditions.
- Additionally, starting September 11, OSAGO repair manuals will incorporate prices for spare parts that reflect market analogues, aiming to align repair costs with current supply conditions and reduce sticker shock for insured drivers.
- Media updates and industry discussions on OSAGO are cataloged in contemporary coverage on Odnoklassniki, where readers can find ongoing commentary and analysis.