In 2011, car owners have repeatedly noticed an increase in the cost of OSAGO and are very worried about it. At the same time, a new price increase is expected. What is the reason for this?
According to the Russian Union of Auto Insurers, the increase in insurance rates, which occurred in July 2011, was quite expected. At the same time, companies consider the increase in tariffs insufficient and are preparing for new changes.
According to the current legislation, the Government can adjust OSAGO tariffs once every 6 months. At the same time, car owners, who often use the online OSAG calculator, note only two cases of price increases over the past 8 years of the OSAGO Law. The Russian fleet has changed a lot over the years, in fact, it has been updated. Consequently, the average size of insurance payments for iron has also grown. In addition, inflation led to an increase in spare parts prices and the cost of a standard hour at the service station.
The volume of vehicles sold increases annually by 30-40%, but the road infrastructure remains the same. Consumer lending is in the growth stage, so a large number of young drivers with an extremely low level of training sit behind the wheel of a car. All this contributed to the growth of accident rate on the roads, therefore, led to the loss-making of insurers under compulsory motor liability insurance.
Recently, the volume of liabilities of insurers has increased. The gap between the obligations of companies and the volume of insurance coverage, in the opinion of the SAR representatives, could be made up only by adjusting tariffs and their ratios. In past years, car owners who used and CTP, noted a dangerous trend. Over the past year, 26 companies left the market, and over 8 years the ranks of SARs have thinned significantly since 60 companies have left the Union. Most of the insurers declared bankrupt, because the growth rate of payments significantly exceeded the growth rate of premiums.
Consequently, such an unpleasant increase in prices for compulsory motor liability insurance was necessary. If this had not happened, a more deplorable picture would have developed on the market. According to insurance companies, it will be possible to talk about any effect of the new tariffs only next year, when all car owners have time to renew their policies. At the same time, PCA participants note that a single adjustment of tariffs and tariff rates will not be enough. If companies decide to increase insurance indemnity limits, this will lead to a new increase in prices for insurance policies.