Translated material
Insurers have come up with two ways to remove the Central Bank from regulating MTPL tariffs
The board of the Russian Union of Auto Insurers (RUA) approved and sent to the Central Bank its proposals for the transition of compulsory motor liability insurance policies to tariffs unregulated by the state, the Kommersant newspaper reports.
The PCT concept offers two options for the development of events. The first implies that from July 1, 2018, the Central Bank will regulate only the maximum base tariff (TB) of the policy, for example, 30 thousand rubles for passenger cars of individuals, and the maximum premium for insurers, and markups and discounts for car power, territory of use, Insurers will determine the age and length of service of the driver themselves.
Currently, there is a rule according to which the maximum price of a compulsory motor liability insurance policy is limited to three times TB and five times if the insurer’s client provided him with false information when concluding the contract. In addition, the Central Bank sets the minimum premium for insurers who have not previously sold compulsory motor liability insurance, and based on the results of monitoring the stability of insurance companies, the publication notes.
Further, the reform, according to the plan of the RSA, will continue, and from January 1, 2020, the Central Bank will completely abandon the regulation of MTPL tariffs, establishing only the lower limit of the tariff corridor based on the information base of the RSA, as well as a minimum list of mandatory risk factors that insurers are required to take into account when pricing, such as driving history.
Another version of the PCT involves, at the first stage, the abolition of regulation of four factors - the age and experience of the driver, restrictions on driving permission and the use of a car with a trailer. At the same time, the Central Bank sets a maximum TB (20 thousand rubles) only for passenger cars of individuals. Further - everything according to the first scenario, except that in the period from July 1, 2018 to December 31, 2019, the Central Bank will abandon the territory coefficient and double the TB, and the Central Bank will also completely abandon the regulation of rates on compulsory motor liability insurance from January 1 2020.
The Central Bank said that they would study the proposals of insurers, the publication writes, recalling that the head of the Bank of Russia, Elvira Nabiullina, instructed insurers to work out a “road map” for abandoning regulated tariffs in November 2015.