The Central Bank of Russia published a draft ordinance for public consultation proposing changes to compulsory motor third-party liability insurance (CMTPLI) pricing, including a revised approach to the local coefficient (LC) and an expansion of the tariff rate range. Under the proposal, regions that remain at a high risk of misconduct in CMTPLI for an extended period would face a 100% higher LC when calculating policy prices. Regions would be identified using the Bank of Russia’s Monitoring of Regional Misconduct Risks in CMTPLI, with the current high-risk zone including the Republic of Ingushetia (since 2019) and the Novosibirsk Region (since 2021). The draft would increase the LC for eight territories within these regions and update reference LC values for a number of other regions based on current CMTPLI loss indicators. The draft also widens the rate range by 40% up and down for motorcycles and by 15% for all other vehicle categories, citing higher spare parts prices and increased CMTPLI payments. Over the first half of 2025, the average payment rose by 17% year on year and by 56% compared with the same period of 2022, while the average premium for ordinary car drivers fell by 4%. Comments and suggestions are invited through 7 September 2025.
Central Bank of Russia 2025-08-25
Central Bank of Russia consults on higher CMTPLI local coefficients for persistent high-risk regions and wider tariff ranges
The Central Bank of Russia released a draft ordinance for public consultation proposing changes to compulsory motor third-party liability insurance (CMTPLI) pricing. Key changes include a revised local coefficient (LC) approach, a 100% LC increase for high-risk regions, and an expanded tariff rate range. The proposal responds to rising spare parts costs and increased CMTPLI payments, with average payments up 17% year-on-year in the first half of 2025.