Over the year since July 2023, the number of regions with increased risks of fraud in the compulsory motor third-party liability insurance (CMTPLI) sector has dropped from ten to four. These data are given in the latest issue of the Monitoring of Regional Risks of Misconduct in CMTPLI.
Over 2024 Q2, the Karachayevo-Circassian Republic improved its indicators and was excluded from the list of troubled regions. The Republic of Ingushetia, Republic of Dagestan, Chechen Republic, and Novosibirsk Region, on the other hand, remain in the ‘red zone’.
The Bank of Russia has enhanced its methodology for risk profiling of constituent territories and used a new indicator in its monitoring—a sampling indicator based on ‘repeated’ losses. This indicator makes it possible to analyze each region individually as regards cases where the same driver or car is involved in road accidents several times over a year. A large number of road accidents in a region, leading to insured events with the above signs, would signal a high risk of misconduct. For example, repeated road accidents involving a driver who receives considerable insurance payments as a victim might be deliberately set up.
Such improper payments for simulated accidents, excessive claims by victims, and other unscrupulous practices finally result in a rise in CMTPLI prices for all drivers.
Using the new indicator in the assessment helps identify hidden negative trends in the regions and take measures to counter insurance fraud. Combatting unfair practices facilitates maintaining the level of CMTPLI accessibility in the regions and curbing the rise in car insurance prices.
Preview photo: Megaflopp / Shutterstock / Fotodom