The introduction of compulsory motor liability insurance into the insurance market has caused a lot of conflicting opinions, although it is successfully practiced all over the world. The subject of insurance in it was property interests related to the risk of liability of vehicle owners.
The introduction of compulsory motor liability insurance was dictated by the need for a social measure focused on the formation of financial guarantees to cover losses in the event of damage, and therefore is a financial instrument that increases road safety.
What it is
Compulsory motor third party liability insurance for vehicle owners is one of the types of insurance provided for citizens of the Russian Federation.
Upon its acquisition, the insurance company assumes obligations to compensate losses to injured persons as a result of the damage caused within the limits of the assigned insurance payment.
In this case, the amount of the insured amount is:
| for injury caused to the life and health of any victim | 160 thousand rubles |
| for damaged property under a policy purchased from the beginning of October 2014 | 400 thousand rubles |
The MTPL policy is stored together with transport documents and is presented to the traffic police inspector upon his first request. If the driver cannot present it to the road safety inspector for any reason, then he has the right to seize the car and send it to a impound parking lot.
The policy does not guarantee protection in case of vehicle theft or damage. Upon expiration of the policy, it is necessary to keep it for five years, as it will affect the cost of insurance under compulsory motor liability insurance in the future.
The emergence of the car insurance system in Russia
The introduction of insurance in the domestic auto world, compared to many foreign countries, started not so long ago.
Auto insurance owes its history to the United States. This is understandable, because it was in this country that the automobile was invented. Following individual episodes of voluntary insurance, some states in America already in the 20s of the 20th century legalized compulsory auto insurance. The whole country followed them. This practice soon spread in Europe.
Compulsory auto insurance appeared in the United States shortly after the first accidents.
In Russia they started talking about compulsory insurance much later - in the second half of the 20th century. And they moved from talk to action only in 1984, when the corresponding act of the Council of Ministers of the USSR was adopted. And then we were talking about voluntary insurance. This step did not bring any significant results.
The issue of introducing insurance policies began to be discussed more actively at the government level after the collapse of the USSR. The development of market relations and increased availability of vehicles contributed to an increase in the intensity of automobile traffic, and hence the number of accidents on the roads. In addition, inclusion in the processes of globalization required the country to participate in many international agreements. In particular, the presence of compulsory car insurance was one of the requirements for joining the WTO.
All this could not help but push legislators to introduce the MTPL system. Moreover, the legal foundations for this were laid in 1996 by the first edition of the Civil Code. Liability insurance was provided for in Article 931 of the Civil Code.
Law on compulsory motor liability insurance
The MTPL law and rules regulate the standards for assigning compensation to the party who suffered losses as a result of an insured event.
Insurance companies are obliged to comply with the rules and the law when concluding a contract for compulsory motor liability insurance, otherwise you may be subject to administrative penalties.
Every person who drives a vehicle is required to have an MTPL policy. If the driver does not have a compulsory motor liability insurance policy, then administrative liability is applied to him in the form of a fine, and the car is not registered with the traffic police.
The personal data of the driver of the vehicle is entered into the policy; if there are several of them, then the inscription “without restrictions” is affixed.
Current legislation provides for an increase in the amount of the insured amount through the conclusion of an agreement in the form of Voluntary Civil Liability Insurance, abbreviated as DSAGO.
This service is provided by many insurance companies. According to DSAGO, an additional payment is made, which allows you to increase the basic insurance amount.
The state regulates the cost of the MTPL policy, introduces restrictions on the amount of payments, which makes it possible to establish a guaranteed low cost of insurance and the obligation to make payments when an insured event occurs as a traffic accident.
Pros and cons of OSAGO
First of all, this policy gives the driver a certain moral peace of mind . Indeed, in the event of an accident due to the fault of the insured, his economic interests to the victim are protected. However, in this situation, you will have to repair your own car at your own expense. This is the main disadvantage of this policy.
Even if the accident occurred due to the fault of another motorist and the policyholder demands compensation for damages from his insurance company, it is not a fact that the amount provided will cover the costs.
Registration procedure
The execution of a compulsory motor liability insurance agreement is carried out in several ways, including:
- at the office of the relevant insurance company;
- in a car showroom, car market, mobile auto insurance points located in the traffic police area;
- on the official websites of insurance companies.
Often, insurance companies work without clear time limits. They deliver the policy to a place suitable for the client at the time appointed by them.
Insurance brokers strive to help clients; they select the best options that meet the client's requirements.
Registration is carried out in the following sequence:
- an application is filled out indicating the intention to conclude a compulsory motor liability insurance agreement;
- the required documents are submitted to the insurance company;
- the data specified in the application is verified;
- if desired, the policyholder checks the insurance policy;
- negotiations are carried out, on the basis of which an agreement is concluded, certified by the signatures of the parties;
- The policy is paid for and the receipt is presented to the company.
The package of documents is presented in person and sent by email. Payment for the policy is made in cash or by bank transfer, depending on the company’s conditions; there are no special requirements for filling out the application form.
Find out how to get an MTPL policy from VTB in the article: MTPL VTB.
You can sample the MTPL agreement.
What documents are needed
To conclude a compulsory motor liability insurance agreement, the owner of a vehicle needs to submit a package of documents to the insurance company, which includes:
- an application filled out on a unified form;
- passport or other document proving the identity of the policyholder;
- certificate of vehicle registration, that is, its technical passport;
- vehicle technical inspection certificate;
- driver's license or a copy thereof of persons entitled to drive a car;
- documents certifying the driver’s right to drive a vehicle, provided that certain persons are allowed to drive it;
- if you have a policy that has expired.
Each policyholder is responsible for the documents provided; they must be in full and contain reliable information.
Is it possible to extend the policy?
The MTPL agreement is extended for the coming year at the request of the policyholder. If he intends to terminate the contract, he must notify the insurance company of his intentions before the expiration of the contract, for which he is given two months.
A contract with an extended period cannot be terminated within 30 days due to late payment of the insurance premium for the next year.
When the contract is extended for a new term, its validity is paid in accordance with the tariffs established by the rules at that time.
Repair according to the policy
According to the innovations in the norms of legislative acts, owners of vehicles that have lost their original appearance are offered, in exchange for monetary compensation, to carry out repair and restoration work at the expense of the insurance company.
Owners have the right to choose their refund. If he accepts the offer, he is given a referral for 20 days to a service station with which the company has an agreement.
But in practice, some problems regarding payment often arise between the owner of the vehicle and the management of the service station.
Technical service centers charge a price significantly higher than the insured amount and the owners have to pay from their own funds.
In addition, there is no guarantee that the service station will be able to satisfy the requirements of the policyholder at the proper level by performing quality repairs. Owners should consider the offer before agreeing.
Extended insurance
An addition to compulsory insurance is DSAGO, the amount of the insured amount of which is established by the owner of the vehicle. However, some insurance companies have restrictions on it.
To expand by registering a DSAGO, you must present a valid insurance policy, a vehicle registration certificate, and information about the number of people allowed to drive it.
Its cost varies; it is set by insurance companies, but usually it ranges from 0.15 to 0.5% of the basic sum insured.
When preparing it, the following are taken into account:
- driver age;
- number of persons driving a car;
- car model;
- year of car manufacture;
- engine power;
- basic amount of the insured amount.
When purchasing both forms of insurance, companies provide significant discounts. Concluding a DSAGO agreement is beneficial for young drivers with little driving experience and people who prefer high-speed driving.
Some insurance companies offer additional services to an extended MTPL policy, for example, car servicing by an emergency technician.
Pre-trial claim
The Law on Compulsory Motor Liability Insurance in its provisions provides, namely in Article 16.1, for the filing of a pre-trial claim against the insurer if disagreements arise regarding the implementation of payments or a refusal to make a payment is received from the insurance company. The measure came into force in September 2014.
A statement of claim containing a claim is filed with the court after 20 working days, which are allotted for making insurance payments, if:
- the company did not pay the due compensation within the time limits established by the regulations;
- violations were committed, for example, the insurance company refused to pay or underpaid the insured amount.
The application must describe the situation in detail, justifying the claim with references to regulations.
Development of the law
OSAGO first appeared in the USA at the beginning of the 20th century, and a few years after its adoption the law spread throughout almost all of Europe. In our country, this insurance system began to operate only in 2003, and the development of the law took about 10 years. The Federal Law “On Compulsory Motor Liability Insurance” itself was adopted in 2002, but due to serious disagreements over tariffs, its entry into force was postponed for some time. In fact, discussions began on the possibility of introducing compulsory motor liability insurance back in the 60s, but for some reasons the introduction of such a project was postponed.
From the moment vehicle insurance became mandatory, the accumulation of a special bonus-malus discount began. KBM has become one of the advantages of this system, since with careful driving the policyholder will be able to save up to 50% of the policy price.
In 2003, this type of insurance became completely mandatory, but many car owners still believe that it was “forced” on drivers in order to be able to “collect money” from citizens in this way. The Federal Law “On Compulsory Motor Liability Insurance” was even considered for legality.
Opponents of such a law gave the following arguments in favor of its repeal:
- The act restricts the basic principles of civil law, namely freedom of contract and property. The fact is that the MTPL insurance contract is mandatory both for any car user and for insurance companies, since it is also public.
- The need to annually renew the policy and, accordingly, pay a fee is more like taxes.
- Neither the introduced basic tariff nor the set of additional coefficients used to calculate the final amount are payments that are commensurate with the financial level of Russian citizens. Since the national minimum wage is taken into account, it is difficult to argue with this argument.
Despite disagreements even among judges in the Constitutional Court, the Federal Law was still recognized as not contradicting the main body of laws of the Russian Federation.
Previously, the body controlling MTPL tariffs was the Government of the Russian Federation, but since 2013 the Central Bank of the Russian Federation has been involved in this. He also became a supervisory authority.
Trailer insurance
There is no clear answer to the question about the need to draw up an MTPL agreement for a trailer. On it, disagreements arise between traffic police officers and vehicle owners, despite the existing amendments introduced to the law on compulsory motor liability insurance since March 2008.
According to the introduced standards, there is no need to conclude an agreement for a trailer installed on a passenger car.
However, it must be issued mandatory for trailers that are attached to:
- passenger cars owned by legal entities;
- trucks with different load capacities;
- motorcycles, scooters.
The cost of a trailer policy is calculated taking into account coefficients - territorial and vehicle use.
Time of occurrence
What year did OSAGO start? And who came up with it? Many drivers are interested in such questions.
The first voluntary automobile insurance contracts appeared in 1898. The first policy for a horseless carriage was issued by the Travelers Insurance Company in the USA. The cost of insurance was only twelve dollars, and the amount of coverage was five hundred dollars. At that time, the amount was quite impressive. It is noteworthy that the client purchased this policy to insure his miracle carriage against collisions with horse-drawn carriages.
Only three decades later, an analogue of compulsory insurance or compulsory motor liability insurance was introduced in the United States. When a large number of cars appeared, the need arose to obtain such policies. The MTPL prototype was first introduced in 1925 in Massachusetts. In the mid-30s of the last century, Europe took up the baton for the introduction of compulsory car insurance. In the second half of the twentieth century, it became the norm for all developed countries.
How is damage assessed?
If there has been a traffic accident, you must immediately call the traffic police service.
To receive compensation for damage caused to property, you must submit the following documents to the insurance company where the MTPL agreement was previously concluded by the culprit of the accident:
- a certificate received from a traffic police inspector confirming the accident;
- a certificate stating that no criminal case has been initiated;
- notification that a traffic accident has occurred.
The insurance company must commission a technical examination to determine the extent of the damage. An independent expert examines the car, collects information about the incident, draws up a report and submits it to the insurance company. 20 calendar days are allotted for drawing up the act.
The victim provides a car, the required documents, and bank details where the insurance amount will be transferred upon completion of all procedures for its intended purpose.
As a result of the examination, it is established:
- the exact amount of money spent on repair and restoration work to bring the car into a state of serviceability;
- the cost of spare parts and materials required for replacement;
- deciding on the feasibility of carrying out repair work;
- full assessment of defects received by the car as a result of an accident;
- calculation of damage for loss of marketable value in accordance with the rules on compulsory motor liability insurance.
An independent examination must be carried out within five working days from the date of receipt of the package of documents. It is carried out with the participation of persons who were involved in an accident and an agent of the insurance company.
Amounts and methods of insurance payments under MTPL
From the first of July 2014, the payment limit for compulsory motor liability insurance concluded after October 1, 2014 is four hundred thousand rubles in case of compensation for damage to a car. Previously, the maximum payment amount was one hundred twenty thousand rubles. It is also planned in 2015, no earlier than April, to increase the amount of payments for compensation for health and life.
To receive compensation, the victim can contact not only the insurer of the person responsible for the accident, but also directly to his insurance company if all participants in the accident have a compulsory motor liability insurance policy.
What is Direct Claims Settlement?
In the event of an insured event, the injured party has the right to contact the insurance company where he has a valid policy.
The possibility of direct settlement of losses is provided exclusively:
- in case of damage to property as a result of an accident, there are no victims;
- There are two vehicles in a traffic accident, the owners of which have compulsory motor liability insurance policies.
However, there are restrictions related to the guilt of both drivers; the accident did not involve a collision of vehicles.
OSAGO in Europe
European insurers are focused on profit from the placement of financial resources received from policyholders. Interest on deposits is the net profit of insurance companies. About 90% of contributions from clients go towards compensation for insurance cases, and the payment limits in Europe are much higher than in the Russian Federation, and for some items the amount of compensation is not limited. Since 2002, in European countries the state has ceased to regulate the size of tariffs; this function is performed by insurers. European motor insurance, which was initially focused on vehicles (this practice is relevant for the Russian Federation), today is based on personalized insurance, when the cost of the policy is determined by the data of the car owner.
The German insurance market leads among European countries in terms of premium collection. Mandatory liability insurance was legalized here in 1939. Today, the policy is not cheap for Germans: the owner of a middle-class car, who has operated the car for 3 years without accidents or road traffic violations, must pay from 1.2 thousand to 1.5 thousand. euros annually. The insurance company has the right to withdraw money from the client’s account without his consent if the policy is expired and re-issuance is required. As compensation for material damage, the insurer will pay a maximum of 511 thousand euros, and in case of damage to health - up to 2.5 million euros to each victim. After an accident, police officers arrive only if there are injured passengers or drivers. Issues of material damage are the responsibility of insurance companies.
England ranks second in terms of the amount of annual insurance fees; car insurance has become mandatory since 1930. A metropolitan English taxi driver has to pay 2 thousand pounds to cover annual insurance, but it includes 2 policies - OSAGO and CASCO. The insurance company will compensate for material damage up to a maximum of 250 thousand pounds, and for damage to health there is no limit: the amount can be any, up to several million. It is prohibited to drive on the road without a policy, and the document must indicate all accidents in which the driver has been involved.
In Italy, up to a thousand euros will be required for a compulsory car insurance policy; the final cost depends on a number of factors that concern the car owner. Insurance payments for health damage are not limited, and the insurer will cover material losses if the amount of compensation does not exceed 775 thousand euros. Car depreciation is not taken into account when calculating the amount of payments.
In France, a driver involved in an accident is required to correctly draw up an accident diagram and send a proper notification to the insurance company. If there are no victims, then there is no need to wait and call the police. The insurance premium ranges from 700 to 1000 euros, and the maximum compensation for loss will be 460 thousand euros. Payments for health damage are not limited; the victim, having become disabled due to an accident, can count on a lifetime pension from the insurance company.
Since 2008, Spain has legalized checking policies while driving, and fines for an expired document or its absence are comparable to the full annual cost of insurance. For example, a motorcyclist will be fined 1.25 thousand euros, and a truck driver will pay 2.6 thousand euros.
In Europe, car owners have long applied for a policy online and received the original documents by mail.
Rating of insurance companies
Independent examination of insurance companies is carried out by the following organizations:
- The RA expert makes an assessment taking into account the location, amount of capital, client base, percentage of positive and negative phenomena;
- NRA, the National Rating Agency, uses information on the economic activities of companies in its assessment and pays special attention to the fulfillment of their obligations towards clients.
They compile a rating of companies in the insurance market and enter information into a database. As for the client base, their assessment is based on:
- prompt payment processing;
- quality of service, attitude towards the client;
- number of reviews on the Internet;
- reviews from acquaintances, friends, colleagues;
- number of clientele.
At the same time, the main criterion for assessing the rating is reliability, expressed by financial indicators.
The rating of the most popular insurance companies is given in the table:
| Company name | Number of applications | Number of failures | % failure | Degree of reliability |
| Allianz-ROSNO | 8 483 | 2 877 | 34% | A++ |
| National Insurance Group | 1 385 | 175 | 13% | A+ (III) |
| Russian insurance transport company | 3 134 | 336 | 11% | A++ |
| Liberty Insurance | 1 231 | 80 | 6% | A+ (II) |
| Rosgosstrakh | 220 813 | 13 097 | 6% | A++ |
| SOGAZ | 5 555 | 310 | 6% | A++ |
| Agreement | 29 619 | 1 623 | 5% | A++ |
| Surgutneftegaz | 1 720 | 90 | 5% | A+ (III) |
| Energy guarantor | 8 852 | 403 | 5% | A++ |
| MSK | 69 968 | 2 963 | 4% | A+ (III) |
| Renaissance Insurance | 11 248 | 387 | 3% | A++ |
| UralSib | 22 629 | 730 | 3% | A++ |
| RESO Guarantee | 53 327 | 1 580 | 3% | A++ |
| Ingosstrakh | 50 628 | 1 309 | 3% | A++ |
| VSK-Insurance | 47 177 | 1 213 | 3% | A+ |
| MAX Insurance | 27 006 | 549 | 2% | A++ |
| VTB Insurance | 1 398 | 16 | 1% | A+ (III) |
And in conclusion, it should be noted that the emergence of the MTPL insurance form in the insurance market makes it possible to avoid traffic conflicts, protect and protect drivers from disputes due to road accidents.
Not every insurance company meets legal requirements, so you need to take a closer look at their activities before choosing the right one.
How to calculate the loss of marketable value of a car, see the article: Loss of marketable value of a car under compulsory motor liability insurance. Find out how to calculate the cost of MTPL here.
OSAGO in the Alfastrakhovanie company is discussed in this article.
Dynamics of the MTPL insurance market in Russia based on the results of the 1H 2020
The MTPL market accounts for about 14% of all insurance premium collections (GWP) or 102.9 billion rubles and showed minimal growth of about 1% . This type of insurance covers the risks of damage caused to another car, life and health of passengers.
OSAGO fees increased slightly due to several factors:
- this is a mandatory type and requires the purchase of a policy on time,
- E-OSAGO has become widely available online, both through insurance companies and through brokers and insurance agents, thanks to regular concessions for the development of online business in 2021.
- The obligation to undergo a technical inspection of vehicle owners before purchasing a compulsory motor third party liability insurance policy was temporarily lifted from May 1 to November 1, 2021, due to quarantine restrictions caused by the coronavirus pandemic.
Top 20 MTPL insurers – 1H 2020
The share of collections of the top twenty insurers operating in the market of compulsory civil liability insurance of vehicle owners is 96% in the first half of this year and it has remained virtually unchanged compared to the same period last year.
The table below shows the top 20 insurers by the volume of collected insurance premiums for compulsory motor liability insurance for the 1H 2021 (RUB million) in dynamics compared to the 1H 2021.
It can be assumed, that
- A significant increase in accrued insurance premiums - 10% or more by the 1st half of 2021 - is noted in SPJSC RESO-Garantiya (+10% - 1.4 billion rubles), PJSC IC Rosgosstrakh (+15% - 1.6 billion rubles), PJSC ASKO-INSURANCE (+43% - 1.3 billion rubles), LLC SK Soglasie (+35% - 1 billion rubles), JSC GSK Yugoria (+48% - 1.3 billion rubles) due to active work through agents and partners;
- It is worth noting the TOP-15 company Unity Insurance JSC (formerly IC Ergo, acquired by the RESO-Garantiya group) - plus 406% - plus 1 billion rubles in insurance premium, which began to actively work mainly in the partner insurance market (brokers, dealers and banks) after integration into a new group;
- A drop in fees of 10% or more in the 1st half of 2021 by the 1st half of 2021 is observed in Ingosstrakh JSC (-18% - 2.5 billion rubles), SOGAZ JSC (-17% - 0.9 billion rubles) and Tinkoff Insurance JSC ” (-38% – 0.6 billion rubles) due to an even greater segmentation of the insurance portfolio by compulsory motor liability insurance and the exclusion of unprofitable segments to reduce unprofitability by type.
Number of concluded MTPL insurance contracts 1H 2020
The total number of MTPL insurance contracts according to the Central Bank of the Russian Federation for the 1st half of 2021 remained virtually unchanged - the change was less than 12 thousand policies (less than 0.1%) from 18.936 million policies in the 1H 2021 to 18.924 million policies in the 1H 2021.
Main reasons:
- high level of car sales in the 1st quarter;
- high availability of E-MTPL (for 8 months of 2021, half of all MTPL policies were electronic);
- lifting the restriction on the mandatory entry of diagnostic card data for vehicle maintenance in connection with quarantine restrictions in the period from March 1 to November 1, 2020.
The table below shows the top 20 insurers for MTPL (by volume of premiums collected for the 1st half of 2020), the number of concluded contracts and dynamics by the 1st half of 2019.
| № | Number of concluded MTPL agreements by insurance companies and policies | 1H 2020 | 1H 2019 | Change, policies | Change, % |
| 1 | SPAO “RESO-Garantiya” | 2,623,545 | 2,300,275 | 323,270 | 14% |
| 2 | JSC "AlfaStrakhovanie" | 2,316,134 | 2,602,572 | -286,438 | -11% |
| 3 | PJSC IC “Rosgosstrakh” | 2,572,119 | 2,288,466 | 283,653 | 12% |
| 4 | SPAO “Ingosstrakh” | 1,901,134 | 2,388,102 | -486,968 | -20% |
| 5 | JSC "VSK" | 1,739,551 | 1,669,463 | 70,088 | 4% |
| 6 | JSC "SOGAZ" | 920,191 | 1,216,902 | -296,711 | -24% |
| 7 | PJSC “ASKO-INSURANCE” | 904,664 | 637,306 | 267,358 | 42% |
| 8 | LLC SK Soglasie | 681,051 | 513,381 | 167,670 | 33% |
| 9 | JSC GSK Yugoria | 823,230 | 529,835 | 293,395 | 55% |
| 10 | JSC “Renaissance Insurance Group” | 469,356 | 413,735 | 55,621 | 13% |
| 11 | LLC “NSG-Rosenergo” | 762,421 | 752,485 | 9,936 | 1% |
| 12 | JSC "MAKS" | 349,065 | 331,112 | 17,953 | 5% |
| 13 | PJSC SAC ENERGOGARANT | 370,708 | 356,190 | 14,518 | 4% |
| 14 | JSC SK Astro-Volga | 449,622 | 417,602 | 32,020 | 8% |
| 15 | JSC Unity Insurance | 245,865 | 34,572 | 211,293 | 611% |
| 16 | JSC “SK GAYDE” | 201,578 | 169,721 | 31,857 | 19% |
| 17 | Zetta Insurance LLC | 207,677 | 179,912 | 27,765 | 15% |
| 18 | JSC Tinkoff Insurance | 133,792 | 287,036 | -153,244 | -53% |
| 19 | LLC Insurance Company “Helios” | 228,751 | 193,513 | 35,238 | 18% |
| 20 | JSC IC “Armeets” | 147,283 | 83,786 | 63,497 | 76% |
| Other companies | 876,532 | 1,570,164 | -693,632 | -44% | |
| Total | 18,924,269 | 18,936,130 | -11,861 | 0.1% |
The growth leaders in terms of the number of contracts were PJSC IC Rosgosstrakh (+12% - about 280 thousand contracts), PJSC ASKO-INSURANCE (+42% - 370 thousand contracts), LLC IC Soglasie (+33% - 170 thousand contracts and JSC GSK Yugoria (+55% - more than 250 thousand contracts) and JSC Unity Insurance (+611% -210 thousand contracts). These changes were presumably associated with increased growth in OSAGO segment in the agent and partner sales channel.
A high drop of more than 20% in the number of concluded contracts was observed at JSC Ingosstrakh - 20% compared to the same period last year, which amounted to about half a million policies, and at JSC TinkoffStrakhovanie - 55% (about 150 thousand units), associated with the tightening segmentation of insurance portfolio, and possibly the loss of undesirable groups of clients.
Average insurance premium for MTPL 1H 2020
The average insurance cost of a compulsory insurance policy in the first half of 2021 compared to the same period last year increased by 5% and amounted to 5.44 thousand rubles. The main reasons are related to the constant analysis of the insurance portfolio by insurers and the ongoing segmentation of customers, including higher prices for unprofitable driver segments by region.
The table below shows the top 20 insurers for compulsory motor liability insurance (in terms of the volume of insurance premiums collected for the 1st half of 2021) and the dynamics by the 1st half of 2021 in terms of the average insurance premium.
| № | Average MTPL insurance premium by insurance companies, rub. | 1H 2020 | 1H 2019 | Change, rub. | Change, % |
| 1 | SPAO “RESO-Garantiya” | 6,246 | 6,501 | -255 | -4% |
| 2 | JSC "AlfaStrakhovanie" | 6,126 | 5,570 | 557 | 10% |
| 3 | PJSC IC “Rosgosstrakh” | 4,745 | 4,622 | 123 | 3% |
| 4 | SPAO “Ingosstrakh” | 6,151 | 5,974 | 177 | 3% |
| 5 | JSC "VSK" | 5,752 | 5,637 | 115 | 2% |
| 6 | JSC "SOGAZ" | 5,106 | 4,626 | 479 | 10% |
| 7 | PJSC “ASKO-INSURANCE” | 4,673 | 4,653 | 21 | 0% |
| 8 | LLC SK Soglasie | 5,832 | 5,716 | 116 | 2% |
| 9 | JSC GSK Yugoria | 4,732 | 4,980 | -247 | -5% |
| 10 | JSC “Renaissance Insurance Group” | 6,716 | 7,172 | -456 | -6% |
| 11 | LLC “NSG-Rosenergo” | 3,826 | 3,897 | -72 | -2% |
| 12 | JSC "MAKS" | 5,706 | 6,135 | -429 | -7% |
| 13 | PJSC SAC ENERGOGARANT | 4,792 | 4,884 | -92 | -2% |
| 14 | JSC SK Astro-Volga | 2,957 | 3,278 | -322 | -10% |
| 15 | JSC Unity Insurance | 5,254 | 7,385 | -2,131 | -29% |
| 16 | JSC “SK GAYDE” | 5,527 | 5,286 | 241 | 5% |
| 17 | Zetta Insurance LLC | 4,920 | 5,109 | -189 | -4% |
| 18 | JSC Tinkoff Insurance | 7,605 | 5,761 | 1,844 | 32% |
| 19 | LLC Insurance Company “Helios” | 4,061 | 4,240 | -180 | -4% |
| 20 | JSC SK "Armeets" | 5,315 | 5,428 | -113 | -2% |
| Average premium | 5,441 | 5,365 | 76 | 1% |
SPAO “RESO-Garantiya” reduced the average price of the policy, but remained a leader and a fairly “expensive” (plus 15% of the average market price) insurance company for the average client, while, as we saw above, it grew over the period under review.
It is important to note a few points here:
- AlfaStrakhovanie JSC, Ingosstrakh JSC and VSK JSC from the top 5 insurers increased the average cost of the MTPL policy by 10%, 3% and 2%, respectively, with the price of their policy higher than the market average by approximately 6-13%, while JSC AlfaStrakhovanie and SPJSC Ingosstrakh reduced fees for the accrued premium and the number of contracts;
- JSC SOGAZ increased the price of OSAGO by 10% (but at the same time the price remained below the market average by about 6%), mainly for its fleet of vehicles, and primarily for corporate cars, showing negative dynamics in terms of accrued premiums and the number of contracts, as we described above;
- PJSC ASKO-INSURANCE did not change the price, and JSC GSK Yugoria even reduced the average check by 5%, while their average check for the policy is lower than the average market price for the 1st half of 2021 by more than 10%. All these companies showed rapid growth in the number of contracts and accrued insurance premiums;
- SK Soglasie LLC increased the average bill by 2% compared to the same period last year, being in the price range with AlfaStrakhovanie JSC, Ingosstrakh JSC and VSK JSC, while increasing both gross revenue and the number of contracts;
- Renaissance Insurance Group JSC (closes the top 10 insurance companies), even after reducing the average price of OSAGO by 6%, remained the most “expensive” insurance company among the top 10 (the average bill is more than 20% of the market average), while reducing its business by accrued premiums and the number of concluded contracts.
- Unity Insurance JSC may sell “group” policies at a 15-20% discount, and this policy is quite reasonable: where it cannot be sold at a high price, it can be sold under a slightly different brand, but cheaper. Here, the average price of an MTPL policy is 3% lower than the market average;
- Tinkoff Insurance JSC, after the rapid growth of its MTPL portfolio in previous years, apparently chose strict segmentation tactics and simply sharply raised the price - plus 40% of the average MTPL bill in the market. Hence, we see a sharp drop in the number of policies signed and a drop in the insurance premium received, which is natural.
Volume of insurance payments MTPL 1H 2020
The volume of insurance payments amounted to about 68 billion rubles, and decreased by 3.3 billion rubles compared to the 1st half of 2021.
The table below shows the top 20 insurers by the volume of insurance payments made under MTPL in 2021 and the dynamics compared to the same period in 2021.
| № | Volume of payments made under compulsory motor liability insurance by insurance companies, million rubles. | 1H 2020 | 1H 2019 | Change, million rubles | Change, % |
| 1 | JSC "AlfaStrakhovanie" | 9,723 | 11,302 | -1,579 | -14% |
| 2 | SPAO “RESO-Garantiya” | 7,722 | 8,953 | -1,231 | -14% |
| 3 | SPAO “Ingosstrakh” | 7,530 | 6,252 | 1,278 | 20% |
| 4 | PJSC IC “Rosgosstrakh” | 7,501 | 7,664 | -163 | -2% |
| 5 | JSC "VSK" | 7,340 | 5,313 | 2,026 | 38% |
| 6 | JSC "SOGAZ" | 4,258 | 6,200 | -1,942 | -31% |
| 7 | LLC “NSG-Rosenergo” | 2,528 | 2,486 | 42 | 2% |
| 8 | PJSC “ASKO-INSURANCE” | 2,333 | 2,253 | 80 | 4% |
| 9 | LLC SK Soglasie | 2,222 | 1,760 | 461 | 26% |
| 10 | JSC “Renaissance Insurance Group” | 2,203 | 2,471 | -268 | -11% |
| 11 | JSC "MAKS" | 1,945 | 3,363 | -1,419 | -42% |
| 12 | JSC GSK Yugoria | 1,928 | 1,421 | 507 | 36% |
| 13 | PJSC SAC ENERGOGARANT | 1,337 | 1,169 | 169 | 14% |
| 14 | JSC SK Astro-Volga | 930 | 458 | 472 | 103% |
| 15 | JSC Tinkoff Insurance | 866 | 304 | 562 | 185% |
| 16 | JSC “SK GAYDE” | 839 | 627 | 213 | 34% |
| 17 | JSC "Nadezhda" | 758 | 1,036 | -277 | -27% |
| 18 | JSC Unity Insurance | 691 | 579 | 112 | 19% |
| 19 | Zetta Insurance LLC | 685 | 468 | 217 | 46% |
| 20 | LLC Insurance Company “Helios” | 625 | 442 | 183 | 41% |
| Other companies | 4,035 | 6,821 | -2,786 | -41% | |
| Total | 67,999 | 71,341 | -3,342 | -5% | |
The volume of insurance payments made as a whole in the MTPL market in the 1st half of 2021 decreased by 5% (-3.3 billion rubles), to 68 billion rubles, compared to the same period in 2021, while payments by the top 20 insurers decreased by only 0.6 billion rubles;
It is important to note a few points:
- The share of payments from the top 20 insurers (H1 2020) from the total MTPL insurance market was 94% in the first half of 2021 – plus 4 percentage points. to the same period in 2021, which amounted to 90% of all fees for this type - of course, these are not exactly the same insurers, but this is food for thought;
- AlfaStrakhovanie JSC and SOGAZ JSC showed a significant decrease in payments, which correlates with a drop in fees. You can think about what came first: an increase in unprofitability - an increase in tariffs and segmentation - and as a result: a fall in fees; or vice versa?
Number of insured events under MTPL in 1H 2020
The number of reported insurance cases for compulsory motor insurance decreased by 27% to 973.8 thousand in the first half of 2021 (minus almost 357 thousand cases), which was also due to restrictive measures due to the pandemic (less traffic on the roads) and a decrease in the frequency of their occurrence.
The table below shows the number of payments made in the first quarter of 2021 and the dynamics compared to the same period in 2021, broken down by the top 20 insurers in terms of the volume of payments made under MTPL.
| № | Number of insurance cases under MTPL by insurance companies, applications | 1H 2020 | 1H 2019 | Change | Change, % |
| 1 | JSC "AlfaStrakhovanie" | 128,531 | 200,011 | -71,480 | -36% |
| 2 | SPAO “RESO-Garantiya” | 124,281 | 155,543 | -31,262 | -20% |
| 3 | SPAO “Ingosstrakh” | 95,511 | 88,209 | 7,302 | 8% |
| 4 | PJSC IC “Rosgosstrakh” | 106,588 | 104,704 | 1,884 | 2% |
| 5 | JSC "VSK" | 101,815 | 80,251 | 21,564 | 27% |
| 6 | JSC "SOGAZ" | 61,781 | 259,621 | -197,840 | -76% |
| 7 | LLC “NSG-Rosenergo” | 39,114 | 39,568 | -454 | -1% |
| 8 | PJSC “ASKO-INSURANCE” | 45,624 | 45,704 | -80 | 0% |
| 9 | LLC SK Soglasie | 33,315 | 26,657 | 6,658 | 25% |
| 10 | JSC “Renaissance Insurance Group” | 29,497 | 34,072 | -4,575 | -13% |
| 11 | JSC "MAKS" | 23,154 | 72,005 | -48,851 | -68% |
| 12 | JSC GSK Yugoria | 31,717 | 27,073 | 4,644 | 17% |
| 13 | PJSC SAC ENERGOGARANT | 19,939 | 21,129 | -1,190 | -6% |
| 14 | JSC SK Astro-Volga | 15,366 | 8,836 | 6,530 | 74% |
| 15 | JSC Tinkoff Insurance | 11,750 | 6,590 | 5,160 | 78% |
| 16 | JSC “SK GAYDE” | 12,606 | 11,326 | 1,280 | 11% |
| 17 | JSC "Nadezhda" | 11,390 | 13,827 | -2,437 | -18% |
| 18 | JSC Unity Insurance | 11,012 | 7,939 | 3,073 | 39% |
| 19 | Zetta Insurance LLC | 9,881 | 8,340 | 1,541 | 18% |
| 20 | LLC Insurance Company “Helios” | 9,373 | 7,688 | 1,685 | 22% |
| Other companies | 51,561 | 111,443 | -59,882 | -54% | |
| Total | 973,806 | 1,330,536 | -356,730 | -27% | |
The most significant changes in the number of insured events were demonstrated by:
- AlfaStrakhovanie JSC, SOGAZ JSC, Nadezhda JSC (included in the top 20 in 2021) decreased the number of insured events by 36%, 76%, 18%, which was due to the negative dynamics of the volume of concluded contracts (-11% , -24%, -66%) Moreover, a sharp decrease in insurance cases at SOGAZ JSC may be caused by a decrease in business activity in Russia in the first half of the year, since a large share of the company’s portfolio (OSAGO) is occupied by corporations and organizations.
- SPJSC “RESO-Garantiya” showed a decrease in the frequency of insured events by 20% with an increase in the insurance portfolio by 14% in terms of the number of concluded contracts - an excellent result.
- The dynamics of JSC VSK, JSC IC Astro-Volga, LLC Insurance Company Helios, in general, corresponds to the trend: an increase in the frequency of insurance payments by 27%, 74% and 22%, respectively, correlates with an increase in the number of concluded contracts by 4 %, 8% and 18% respectively.
- The frequency of insured events reported to Tinkoff Insurance JSC increased the most - by 78%. Moreover, fees and the number of concluded contracts fell, which is perhaps why the company had to increase the average cost of the policy by a record 32%, becoming one of the most expensive companies to purchase an MTPL policy.
- The significant growth of Unity Insurance JSC is due to a sharp increase in the portfolio - more than 6 times in the number of concluded contracts for the first half of 2021.
Average payment under compulsory motor liability insurance in 1H 2020
The average payment for compulsory car insurance increased by 30% to almost 70 thousand rubles compared to the same period in 2021.
We can assume that the growth is associated with several factors:
- an increase in prices for spare parts for vehicles due to the weakening of the ruble against other currencies (-20%) and a shortage of spare parts due to the closure of borders due to the pandemic;
- partial loading of dealers for compulsory motor liability insurance, so that insurers are given the latest volumes for CASCO.
The amount of average payments for the TOP-20 insurance companies for compulsory motor liability insurance (by the volume of payments made) is presented in the table below.
| № | Average payment under compulsory motor liability insurance by insurance companies, rubles | 1H 2020 | 1H 2019 | Change, rub. | Change, % |
| 1 | JSC "AlfaStrakhovanie" | 75,646 | 56,507 | 19,139 | 34% |
| 2 | SPAO “RESO-Garantiya” | 62,130 | 57,557 | 4,573 | 8% |
| 3 | SPAO “Ingosstrakh” | 78,835 | 70,873 | 7,963 | 11% |
| 4 | PJSC IC “Rosgosstrakh” | 70,376 | 73,196 | -2,819 | -4% |
| 5 | JSC "VSK" | 72,088 | 66,207 | 5,881 | 9% |
| 6 | JSC "SOGAZ" | 68,922 | 23,881 | 45,042 | 189% |
| 7 | LLC “NSG-Rosenergo” | 64,634 | 62,840 | 1,794 | 3% |
| 8 | PJSC “ASKO-INSURANCE” | 51,144 | 49,295 | 1,849 | 4% |
| 9 | LLC SK Soglasie | 66,682 | 66,032 | 650 | 1% |
| 10 | JSC “Renaissance Insurance Group” | 74,696 | 72,534 | 2,162 | 3% |
| 11 | JSC "MAKS" | 83,983 | 46,707 | 37,276 | 80% |
| 12 | JSC GSK Yugoria | 60,795 | 52,486 | 8,310 | 16% |
| 13 | PJSC SAC ENERGOGARANT | 67,061 | 55,304 | 11,756 | 21% |
| 14 | JSC SK Astro-Volga | 60,519 | 51,866 | 8,653 | 17% |
| 15 | JSC Tinkoff Insurance | 73,709 | 46,102 | 27,606 | 60% |
| 16 | JSC “SK GAYDE” | 66,579 | 55,338 | 11,241 | 20% |
| 17 | JSC "Nadezhda" | 66,593 | 74,911 | -8,318 | -11% |
| 18 | JSC Unity Insurance | 62,709 | 72,919 | -10,210 | -14% |
| 19 | Zetta Insurance LLC | 69,346 | 56,093 | 13,253 | 24% |
| 20 | LLC Insurance Company “Helios” | 66,651 | 57,441 | 9,210 | 16% |
| Average payout for all insurance companies | 69,828 | 53,618 | 16,210 | 30% | |
Most of the companies increased the average payment for insurance compensation, the exception from the top 20 are PJSC IC Rosgosstrakh, JSC Nadezhda and JSC Unity Insurance, and JSC Nadezhda also significantly reduced its insurance portfolio and the number of signed contracts by 66 %.
A significant deviation from the average payment for the entire market towards a decrease in the average payment was shown by: SPJSC RESO-GARANTIA (-18%), PJSC ASKO-INSURANCE (-27%), JSC GSK Yugoria (-13%) , JSC IC Astro-Volga (-13%), JSC Unity Insurance (-10%)
The average payments of SPAO Ingosstrakh and JSC MAKS exceeded the average for all companies by 13% and 20%.
