Starting next year, the prices of compulsory vehicle insurance will not be the same for everyone. The new charges will be based on a list of factors that affect the risk of causing damage by drivers.

The Board of the Financial Supervision Authority (AMF) has approved this month the regulation "On determining the risk factors that are included in the calculation of the premium for compulsory insurance products in the transport sector".

In calculating the insurance premium, companies must apply several main risk factors, such as the history of damages, including cases where the cause of the accident is not listed in the insurance policy; motor power of the vehicle; age of the insured; experience in driving a motor vehicle; the use of the tool by a subject or by an individual; vehicle registration district; the age of the vehicle.

In addition to the above factors, the regulation provides that insurance companies can also apply other risk factors, determined by them.

These risk factors will be used in the calculation of the insurance premium for the category of cars, in the compulsory motor insurance product for internal liabilities to third parties (internal MTPL), but not for border and green card insurance products.

The insurance companies will determine the insurance premium rates themselves, according to the defined methodology, but are obliged to notify the AMF at least 30 calendar days before the application of the new premium rates.

Together with the notification for the application of new premium rates, insurance companies must submit to the Authority the technical database, risk factors, and actuarial assessments used for the calculation of insurance premiums, accompanied by the opinion of the authorized actuary of the company, presented in the form of a written report.

The authority, in the function of supervising the activity of the insurance company, may order the revision of the new premium rates, if it finds that the database for drawing up the insurance premium tables is not correct, or the insurance company does not act by actuarial principles and the methodology used for the inclusion of risk factors defined by this regulation.

Insurance companies may not apply insurance premium rates other than those reported to the Authority and may not change mandatory insurance premium rates more than twice within a calendar year.

Insurance companies must publish on the official website, throughout the implementation period, the coefficients of the risk factors, accompanied by cases of their implementation in practice, as well as the mandatory insurance premiums in the transport sector.

Insurance companies must also display at each point of sale the signs with the insurance premiums, approved during the period of their implementation. The new regulation will enter into force on January 1, 2025.