The surge in new car sales in Russia has driven a corresponding rise in demand for CASCO policies. As reported by the industry outlet socialbites.ca, Rosgosstrakh saw a notable 55% increase in fees for this type of insurance during the first nine months of 2023, signaling a broader shift in consumer behavior toward comprehensive auto coverage as vehicle ownership expands.
Autostat’s data shows that in the eleven months of the prior year, car sales in Russia climbed by 65% compared with the same period in 2022. Models from Lada and a growing lineup of Chinese brands emerged as leaders in this wave of demand, while the market for used cars also continued to grow, reflecting broader consumer confidence and shifting purchasing patterns toward both new and pre-owned vehicles.
Industry experts note that the rise in CASCO demand is closely tied to shorter spare-parts availability and rising component costs. Buyers appear increasingly aware of the value of voluntary auto insurance when the insurer shoulders the burden of repairs and sourcing parts. Dmitry Usanov, who directs the underwriting department for motor insurance at Rosgosstrakh, emphasized that policyholders are recognizing the practical benefits of CASCO in a market where repair timelines and parts procurement can be uncertain.
Looking ahead, Rosgosstrakh anticipates that the market saturation effect for new cars will ease somewhat in 2024. Still, a more active use of franchise models and other distribution strategies is expected to help keep CASCO premium levels stable. The company projects that sales of CASCO policies tied to second-hand vehicles could rise by up to 30%, reinforcing the role of comprehensive coverage in both new- and used-car markets.
By year-end, the market observed that Chinese-brand vehicles were particularly prominent in sales, underscoring a shift toward more affordable, value-focused options within the broader price spectrum of new cars in Russia. In related notes, analysts highlighted urban safety concerns, with discussions around the most congested streets and high-risk corridors in Moscow, which in turn influence consumer decisions about coverage, risk, and premium costs. These dynamics collectively shape the ongoing evolution of auto insurance demand as Russia’s vehicle landscape continues to transform.