Aiba (Italian association of insurance and reinsurance brokers) looks favorably on the rules on liberalization introduced with the Grow Italy decree"They can be shared for the original objectives of increasing competition", but "certain provisions appear ineffective". For the association it is necessary to do more in terms of real competition between different intermediaries, comparison of policies, malus bonuses and black boxes. And on the competitive scenario, the crisis of Fondiaria Sai is not helping, which "must be saved to prevent the motor liability system from crashing - said the president, Francesco G. Paparella - but the merger with Unipol greatly restricts the non-life market and we do not think a harbinger of benefits for users. In Europe the market is much larger in terms of number of operators and we are moving towards an even higher concentration”.
Meanwhile, the photograph taken by the Auto observatory emerges in 2011, there was a slowdown in the rise in motor liability rates: the average increase was 3,7% overall against +12,2% a year ago. The direct companies (telephone and online) are an exception, whose tariffs are significantly higher with an increase of 11,9% (to 610 euros). Customer mobility decreased on 2010: only 6% changed company against 22% of the European average. And yet, for virtuous drivers, choosing well could save up to 436 euros. Premium collection and profitability improve for the industry. The analysis was carried out in collaboration with Iama Consulting, a consultancy company specialized in the insurance market, based on the analysis of the list prices applied by the insurance companies. The data was collected by Check-It-Auto, the professional tool of Aiba brokers for comparing car rates and additional guarantees.
BONUS MALUS TO REVIEW, YES TO BLACK BOXES
On liberalizations, President Paparella explains: “To produce real benefits for consumers, it is essential to encourage market competition, allowing for real competition between different intermediaries, given the strong differentiation of prices charged on the market and too high consumer loyalty. Similarly to what happens in Europe, the comparison must be encouraged before signing the policy, as is generally done on the occasion of other personal purchases. Comparison that, in addition to prices, should be extended to the various guarantees offered by the policies, carefully assessing the presence of total or partial exclusions and recourse clauses. Aiba also suggests reviewing the pricing system bonus Malus, which should be concentrated on the driving behavior of the last 5 years, recorded in the risk certificate, available in dematerialized form. Aiba is also supportive of black boxes which are very useful tools. However, it is unacceptable that the costs of uninstalling be passed on to consumers who want to change company, because it means creating a further obstacle to competition”.
RATES SLOW DOWN: +3,7% IN 2011
ONLINE COMPANIES DECREASE THE COMPETITIVE ADVANTAGE
"The average premium paid by Italian consumers to purchase a motor liability policy at the end of 2011 was 734 euros, equal to an increase of 3,7% compared to 2010 - says Paparella - The annual growth rate of tariffs is decidedly lower than the +12,2% recorded a year ago and in fact certifies the improvement of the technical indicators of the motor sector”. However, the competitive advantage of direct companies is decreasing: at the end of 2011, the average increase in premiums applied by these companies was 11,9% at 610 euros against +3,5% at 745 euros for traditional companies. “Direct companies – explains Paparella – are always convenient for that market segment that the company has chosen as a target. In the last two years, however, the market segment they were aiming for has been conquered and now, in order to grow, they have to expand to other types of customers and have had to raise the rates”.
ONLY 6% OF CUSTOMERS CHANGE COMPANY IN ONE YEAR
THE VIRTUOUS DRIVER CAN SAVE UP TO 436 EUROS
In 2011, the percentage of policyholders who changed company was 6%, a marked decrease compared to 10,1% in 2010 and a decrease below the levels of 2006 (6,3%). These are very low percentages when compared to 22% of the European average, and even more so with the situation in England, where the percentage is 50%. But knowing how to choose can make the difference. For example, the most virtuous motorists can save up to 436 euros. The Aiba study finds that in Milan a virtuous driver (40-year-old employee; Fiat Bravo 1.4 Dynamic, for several years in CU 1 with no claims for 6 years, ceiling of 6 million) paid at the end of December from a minimum of 337 euros to a maximum of 653 euros, a difference of 316 euros, 94% more. Similar results for the surveys in Bologna, where the premium varied between 464 and 900 euros. While in Rome the difference could even exceed 100%: here it ranged from a minimum of 410 to a maximum of 823, 101% more. At the national level, the virtuous driver paid an average of 2,9% more than in 2010 (629 euros). On the other hand, those who caused an accident in the last year have suffered a double increase in tariffs: 5,7%.
EQUALITY FOR MEN AND WOMEN? THE MARKET IS NOT READY YET
The European Court of Justice has established that from 12 December 2012 the rates can no longer be differentiated on the basis of gender. For Aiba, the market is not yet ready and there are significant discrepancies between men and women: "In the case of 40-year-olds, men pay on average a premium higher than 0,2% of that of women, with a maximum difference of 6,7%, even if there are companies that reward men rather than women. In the case of 20-year-olds, men pay a decidedly more expensive premium (+32,3%) than women, with a peak of 60,5%”, notes the Association.
THE MARKET: THE PROFITABILITY OF THE AUTO TPL BRANCH IMPROVES
In 2011, motor liability premiums collected grew to 17,821 billion euro (+4,9% compared to 2010), making up for the drop in 2009 (-3,6% to 16,99 billion). Thanks to the increase in premium income and the reduction in the frequency of claims (-0,9% in the first nine months of 2011), the improvement in the profitability of the class continues for the second year in a row, which brings the current management of many companies into I earn. However, the combined ratio still remains above the critical threshold because the overall cost of claims is affected by the insufficiency of provisions set aside in previous years. Overall, in Aiba's calculations, the companies continue to lose: at the end of 2011, out of every 100 euros collected, 101,8 euros were spent (105,7 euros in 2010).
