INSTITUTIONAL CONTRADICTIONS IN THE DEVELOPMENT OF MTPL IN THE CONTEXT OF DIGITALIZATION AND SANCTION RESTRICTIONS

Abstract

The article is devoted to the analysis of institutional contradictions within the compulsory civil liability insurance system for motor vehicle owners in Russia in 2023–2025, in the context of two simultaneously operating, opposing factors: the accelerated digitalization of the insurance market and sanctions-related restrictions on the automotive components market. The research hypothesis posits that digitalization reduces the costs of concluding and administering contracts; however, it does not compensate for the faster-growing costs of fulfilling obligations and conflict-related costs, as a result the total transaction costs of the system increased in 2023–2025. The theoretical framework of the study draws on institutional economics, transaction cost theory, and risk theory. The empirical basis comprises data from the Bank of Russia and the Russian Union of Auto Insurers (RSA).