Isvap: the reform of the bonus-malus system is almost ready

A reform of the bonus-malus system for compulsory motor liability insurance is almost ready. The president of Isvap Giancarlo Giannini said this this morning, on the occasion of the annual report.
“The work of the technical table set up by the Authority with the market for the reform of the Bonus-Malus system is at an advanced stage, a system that is no longer able to function as a correct selective mechanism for the purpose of formulating the right bonus” explained Giannini.
The investigations carried out so far, according to Isvap, "have highlighted the need to develop a new scale of coefficients of merit, unique for the entire market, which will allow policyholders to know in advance the cost savings resulting from virtuous driving behavior or vice versa the penalties”.
The report also revealed that the insurance market in Italy in 2010 confirmed its solidity despite a negative profitability. "Our market – Giannini said – continues to show good vitality, higher than the European average and the trend of the domestic economy".
The supervisory institute has also pointed its finger at the practice of some banking institutions of applying abnormal commissions on the policies that the bank sells combined with the stipulation of a home loan. "For the protection of consumers it remains of fundamental importance to regulate the phenomenon and to avoid that the contractual position assumed by the financing institution translates into unjustified charges for the customer" reads the summary of the intervention.