We have collected for you all the information on the upcoming changes in compulsory motor insurance.
1. The tariff corridor for compulsory motor third party liability insurance will expand.
Firstly, the tariff corridor boundaries will be expanded once again. The tariff corridor for individuals will be increased by 10% up and 10% down. Thus, the minimum base professional person and industry email list rate will be 2471 rubles, and the maximum – 5436 rubles. The spread of the cost of MTPL will increase even more for business representatives and the self-employed. The boundaries of the minimum and maximum rates will be tariffs and expansion expanded by 20% for companies (both with passenger cars and trucks), and by 30% for taxi drivers.
2. Auto insurance pricing will become more flexible.
Secondly, the principles for calculating the cost of a car insurance policy are changing. If previously insurance companies set a base rate for a specific region (within the tariff corridor), now the fee for MTPL will be individual for each car owner.
Insurers will have more freedom in choosing the factors that influence the formation of the basic cost of MTPL, and policyholders will receive a flexible tariffs and expansion that will depend on how reliable the driver is. Now insurance companies will calculate the tariff based on a number of factors that they will determine independently.
Among them are the presence of serious traffic violations, the make, model and age of the car, the installation of telematic devices and even the color of the car. The personal tariff will also be affected by marital status and the presence of children. The insurance company must fulfill a mandatory condition – the list of factors affecting the cost of MTPL must be published on the website of the insurance company.
There are also restrictions on the use of data for calculating the tariffs and expansion . The amendments provide protection against discrimination of citizens – insurers will not be able to use such data as nationality, race, language, religion and official position when calculating the tariff.
3. The KVS coefficients will change.
Thirdly, the changes will affect the experience and age coefficient. The cost of policies will increase for young drivers with little in the context of a meical experience and will decrease significantly for experienced drivers over 59 years old. Also, the age and experience coefficient will now be applied to legal entities.
Infographics of the Russian Newspaper – Anton Perepletchikov, Vladimir Barshev
What does this mean for insurance companies?
The result of the new rules for calculating the base rate and changing the coefficients may be a decrease in the profits of companies – since there are still many more experienced and reliable drivers. According to experts, on average, the insurance fee will decrease for 80% of drivers (according to Rossiyskaya Gazeta). Another important factor is that the changes in legislation are taking place against the backdrop of a general decline in the insurance market and a post-crisis situation in the economy.
In the changed conditions, it is important for players in the insurance industry to comply with two conditions:
- Maintain profit despite falling rates and odds,
- Restructure the processes of receiving and processing data on customer drivers and their cars to create individual tariffs that are profitable for the company.
What to do?
To form new tariffs, insurance companies will need to receive more diverse indicators and characteristics, not only usa data for the car, but also for the driver. Here we are ready to help insurers and provide all the necessary data that will help optimize the new flexible OSAGO tariff.
A variety of data in one source!
Using the Spectrum online platform, insurance companies receive information about both the car and the driver in one place.
What data is available on the car?
Spectrum car checks contain all information on technical tariffs and expansion specifications, registration actions, traffic fines, accident history, repair data, mileage, taxi and car sharing history and other information.
What data is available on the driver/car owner?
The following data can also be obtaine for the car owner or driver to calculate the rate and coefficients: information on fines issue on the driver’s license, driving experience, enforcement proceedings, problems with the law, etc. The solutions also include a driver assessment service, which makes it possible to more accurately assess the risks associated with the driver’s reliability and calculate an individual tariffs and expansion on all data on an individual.
In short, we provide most of the data necessary for the formation of new tariffs!
What else: automation, faster policy processing and cost reduction
Additionally, the SpectrumData platform helps optimize costs – it saves personnel and time resources for data processing, and reduces the overall time for approving an application. Our clients receive all the data for calculating the cost of insurance almost instantly, saving up to 15 minutes for processing one OSAGO policy.