RUSSIA: cost of MTPL policy for individuals in January-May decreased by more than 4% y-o-y against the background of increasing competition

13 June 2019 —
For January-May 2019, the average cost of MTPL policy for individuals decreased by 4.1% y-o-y, as data from the Russian Association of Motor Insurers (RAMI) show.

Average cost reduction for legal entities reached 13.5%. However, for those vehicle types with high loss ratios, the average MTPL cost went up. For example, cost increase for taxis amounted to 7.1%, for buses it was up 12.3%, ASN reports.

As the Executive director of RAMI, Evgeny UFIMTSEV noted,
"we see that competition among MTPL insurers remains strong and leads to a continuous decline of MTPL average cost. Now the competition is mainly related to vehicle types and regions. And as soon as the tariff liberalization reform is completed, making insurers able to consider parameters affecting the accident rate of drivers, vehicle owners with good driving records are sure to feel price competition among insurers, fighting for clients."