In the next 3 years, the main trends in the auto insurance market will be the development and increase in the level of service, as well as adjustments to the law on compulsory motor third party liability insurance. Competition by means of price reduction is a thing of the past.
The car insurance market will not only continue to develop, but will intensively “gain momentum”. This is due to the fact that the number of buyers joining the ranks of car owners is becoming more and more. And those who bought cars 5-10 years ago are beginning to actively update them.
The principle here is quite simple - the more cars are purchased, the more insurance policies are issued. Especially when it comes to new cars and mandatory, for cars purchased on credit, CASCO.
And in the context of the projected growth in the welfare of citizens and the development of the automotive industry (offering an increasing number of affordable and attractive cars), the growth of the auto insurance market is estimated at about 40% annually.
According to participants in the auto insurance market, the struggle will certainly continue, but its methods are already becoming different. Price dumping is no longer relevant today. Modern methods of competition in the auto insurance market are competition by “service” (speed of payments, volume of required documents, availability of our own or “friendly” car services, loyalty to customers, legal support, convenience of working with the company for the client).
Moreover, in terms of the level of service, even now large companies are far from always leading, for which the system of work resembles a conveyor belt, and therefore the company is of the same type and clumsy. Medium-sized companies are quickly becoming more “customer-centric”, flexible and mobile, allowing them to quickly respond to market needs.
In the near future, among other services that will be actively offered by insurance companies, there will be the provision of a “replacement car” for the period of repair or auto assistance services in other cities of Russia. The VIP service will also be in demand in the market and can become a serious competitive advantage.
As for OSAGO, many insurers are convinced that the law will be amended soon. The draft amendments to the law on OSAGO prepared by the Ministry of Finance contain the idea of reimbursing the real cost of car repair (excluding wear and tear of parts) and a method for calculating damage for harm to life and health, the purpose of which is more complete compensation for damage. And the adoption of these amendments will most likely lead to an increase in tariffs for compulsory motor third party liability insurance. In addition, the rates for this type of insurance will also grow for the reason that the cost of spare parts and car repairs has increased by an order of magnitude since the adoption of the law, while the rates remain unchanged.
