Translation. Region: Russian Federal
Source: Central Bank of Russia –
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The Bank of Russia proposes to change the procedure for determining the territorial coefficient (TC). If a region has a long-term high risk of unfair actions in MTPL, then when calculating the cost of the policy, the TC there will be twice as high as the base value. New pricing rules are provided draft instructions Bank of Russia, which was published for public discussion.
The Bank of Russia will determine such regions taking into account their location in the high-risk zone. According to data "Monitoring regional risks of unfair actions in compulsory motor third party liability insurance", these include the Republic of Ingushetia (since 2019) and the Novosibirsk Region (since 2021). For 8 territories located in these regions, it is proposed to establish an increased value of CT. From 2023 to 2025, the number of regions with high risks of unfair actions (the "red" zone according to Monitoring) decreased from 12 to 2, over the past year as a result of the active work of regional authorities from the "red" zone came outRepublic of Dagestan and the Chechen Republic.
The Bank of Russia also updates the base value of the CT for a number of regions, taking into account the current loss ratio of MTPL.
In addition, the document expands the tariff corridor in both directions: by 40% for motorcycles and by 15% for all other categories. The revision of the boundaries is necessary to maintain fair pricing in the context of rising spare parts costs and the size of OSAGO payments. For ordinary motorists, the tariff corridor has not changed since September 2022. At the same time, the average payment has increased significantly: its value for 6 months of 2025 was 56% higher than for the same period in 2022, and 17% higher than for the first 6 months of 2024.
After the expansion of the tariff corridor, insurers will still be able to offer experienced and careful drivers policies at low prices due to more correct pricing for drivers with high losses. In the second quarter of this year, 58% of classic policies (excluding short-term ones) for motorcycles and 29% of policies for ordinary motorists were issued at the upper limit of the current corridor. According to the results of 6 months of this year, the average premium for ordinary motorists decreased by 4%. Such a decrease with a simultaneous increase in the average payment occurs due to the possibility of correct pricing within the boundaries of the expanded corridor for policies of high-risk policyholders and competition for low-risk drivers.
Comments and suggestions regarding the draft directive will be accepted until September 7 inclusive.
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