Development of the information and communication sector as a factor in the evolution of fair vehicle insurance: from concept to determination of rates

The paper describes the features of auto insurance services in Russia, including the factors affecting the cost of insurance products. A review of existing legislation in the field of car insurance is presented: according to the Law “On the State Information System ERA-GLONASS, manufacturers of categories B and C vehicles will be required to implement this tracking system for all cars produced in Russia. This fact was a prerequisite for research aimed at exploring the possibility of adapting the foreign system of “smart insurance” to the Russian market. Modern processes of car insurance and related technologies for determining the insurance policy value used in such countries as the US, UK and Australia rely on telematics sensors that determine individual performance and driving style. Some of components of the ERA-GLONASS system may be applied as such sensors. In this paper, we present different models of participant interaction during implementation of a new technology for the process of delivering CASCO insurance products in Russia. Such models include the public-private model, independent-private model, as well as industry and outsourcing models. We identify the main mechanisms for improving the competitiveness of insurance companies through general introduction of a “smart insurance” approach: reducing the policy rates in case of safe driving, and expanding the functionality of IT services for drivers. A survey of vehicle owners and interpretation of the results are presented: the purpose of the survey was to identify readiness of drivers for transition to the proposed model of car insurance, and identification of functionality of appropriate mobile services. Relying on an analysis of the methodology for calculating policy rates for risky types of insurance approved by order of Rosstrakhnadzor, a model of insurance rate calculation is proposed using special discounts applied in recognition of careful driving.