In the last year, the long upward trend in motor liability insurance has come to a halt: at the end of 2012, the average rate to insure a car was 698 euros, 4,9% less than the 735 euros at the end of 2011. The reduction it involved the entire country, with a maximum of -9% in Trento. The trend reversal is due to the decrease in the frequency of claims (-13,4%) and the reduction in their cost (-3%). This is what emerges from the Auto Observatory of Aiba, the Italian association of insurance and reinsurance brokers, created in collaboration with Iama Consulting, a consultancy company specializing in the insurance market.
However, in Italy “motor insurance coverage continues to be the most expensive in Europe – underlines the president of AIBA, Francesco Paparella -. The market is characterized by the absence of innovation in the products and by the scarce flexibility of the offer. Despite the many regulatory interventions, the phenomenon of fraud shows no signs of decreasing and compensation for claims with minor injuries, albeit decreasing, remains at high values”.
Furthermore, despite the slight contraction in premiums, the profitability of Motor TPL improves: the combined ratio (ratio between claims charges and premiums) is in fact 99%, below the critical threshold of 100% and a clear improvement compared to 103% end of 2011.
In 2012, the competitive advantage of direct companies (telephone and online) narrowed further: the average increase in premiums applied (+0,8%, average rate at 615 euro) was countered by the more aggressive policies applied by traditional companies ( -5,2%, average rate at 706 euros) which in the second half of the year lowered the rates for the best customers, thanks to the performance of the technical accounts. On the other hand, the tariffs applied by the banks increased sharply (+11,9%).
According to data from Consap (Insurance Services Concessionaire) - manager of the Guarantee Fund for Road Victims which provides compensation for damages caused by unidentified vehicles or those without RCA -, the number of accidents caused by uninsured vehicles has increased overall by 20 %, with an almost double increase recorded in the South compared to the Centre-North. Approximately 70% of accidents caused by unidentified vehicles and over 60% of those caused by uninsured vehicles concern the South.
