Financial analysts have concluded that insurance fraud is a major contributor to the increasing cost of OSAGO, Russia`s compulsory motor third-party liability insurance, across the country, including regions like Novosibirsk. This finding comes from an analysis of 2024 insurance statistics by experts from NAFI and BusinessDrom analytical centers. The study revealed an increase in the number of regions where OSAGO policies are more expensive than the national average. Notably, the Novosibirsk region, a hotspot for insurance fraudsters, has emerged as one of the top five most expensive areas for OSAGO.
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OSAGO is consistently rated as one of the least profitable insurance products, primarily because approximately 90% of all insurance claims fall under this category. In 2024, the total amount of losses claimed due to insurance fraud rose significantly by 20%. This alarming statistic was reported by Igor Fatyanov, head of the All-Russian Union of Insurers` (VSS) anti-fraud committee. These fraudulent claims frequently involve staged traffic accidents, which are often documented using the «Europrotocol» method without the need for police involvement. This simplified protocol is currently utilized for the vast majority of non-injury-related insurance incidents, making it a convenient avenue for fraudsters.
An in-depth analysis of data for the first nine months of 2024 revealed a slight decrease in the average OSAGO premium across Russia, from 7,800 to 7,600 rubles. However, this national trend masks a contrasting reality in several specific regions where prices actually increased. The number of constituent entities where OSAGO premiums exceeded the national average grew from 13 to 16, indicating a localized escalation in costs.
The Novosibirsk region stands out as a significant anomaly, securing a spot in Russia`s top five for the highest average OSAGO premiums. The average premium there remained consistently high at 8,500 rubles for the first nine months of both 2023 and 2024. The 2024 study explicitly links Novosibirsk`s high OSAGO tariffs with a notable level of insurance fraud activity. This correlation strongly suggests that the prevalence of insurance fraudsters in this Siberian city is directly contributing to higher OSAGO rates, not only within the region but also influencing national «motor third-party liability» tariffs across the entire country.
For context, Moscow, which already holds the Russian record for the highest average premium, saw an increase from 10,800 to 11,300 rubles in 2024. Other regions experiencing similarly high average OSAGO premiums include St. Petersburg, Moscow Oblast, and Murmansk Oblast.
It is important to remember that the OSAGO premium, or tariff, is calculated based on a driver`s base coefficient (which accounts for experience, past OSAGO claims, and other factors). This base is then multiplied by territorial and various other coefficients. The fundamental goal of this calculation methodology is to offer more affordable policies to experienced, accident-free drivers compared to their younger or less fortunate counterparts. Consequently, regions with lower accident rates and more affordable average vehicle repair costs typically have cheaper policies than major metropolitan areas like Moscow, where even minor traffic incidents can easily result in damages exceeding one million rubles.
Regarding the statistics on insurance fraud, analysts meticulously examined the ratio of damages reported in initiated criminal cases to the total volume of OSAGO insurance premiums. This specific analysis confirmed the alarming 20% increase in attempts to illegally obtain payouts through «criminal» activities. Regions identified with the highest levels of insurance fraud include those that, over the first nine months of 2024, consistently ranked among the top five. This ranking was based either on the reported damages in criminal cases or on the cumulative risk of dishonest actions in OSAGO, as determined by the Central Bank.
A breakdown by federal district highlights specific problem areas:
- Central Federal District: Smolensk Oblast
- Northwest: Nenets Autonomous Okrug
- Southern Russia: Krasnodar Krai
- North Caucasus: Ingushetia
- Volga regions: Ulyanovsk Oblast
- Urals: Chelyabinsk Oblast
- Siberian Federal District: Novosibirsk Oblast
- Far East: Primorsky Krai
