Small insurers may leave the OSOPO market due to lower rates.
New rates for compulsory liability insurance of hazardous facilities owners (OSOPO) may make this market less profitable for small insurers. The National Association of Liability Insurers told Sovereign Economy that after such declines, market size typically declines, while company costs for labor, IT and administration continue to rise.
For small insurers this is particularly sensitive: in some cases the cost of drawing up the contract may be higher than the cost of the policy itself. NSSO believes that the drop in the average bill will put more pressure on small players and may reduce their interest in working with OSOPO. The Bank of Russia will be able to change the rates not before 2027.