On average, Italian motorists pay RC car prices higher than 47 euros compared to other citizens of the European Union. This difference is much smaller than a few years ago (in 2008-2012 it was 213 euros) and the differential between the north and south of the country is also decreasing. Not only that: in the first months of 2022, car prices fell again despite the jump in inflation, but "we must be aware" that the price race "is bound to have an impact on the cost of claims, already growing in 2021”, and therefore “they become even more necessary organic reforms of the system” to make it more sustainable and stable in the medium and long term. She said it Maria Bianca Farina, president of Ania, in his report to the annual meeting of the national association of Italian insurance companies.
In particular, Farina calls for the review of the bonus-malus mechanism, the modification of the taxation on premiums, "very penalizing in comparison with Europe", and the univocal definition of compensation for damages for serious personal injury.
In 2021 Life and Non-Life premiums at 140 billion, +3,8%
As for the general picture of the Italian insurance sector, the number one of Ania explained that in 2021 the overall Life and Non-Life premiums they reached 140 billion euros, recording a growth of 3,8% on an annual basis and thus returning to the level of 2019.
"This confirms a growing demand for protection, albeit still insufficient to overcome the underinsurance situation that characterizes our country - added Farina - In particular, Life premiums, the savings that Italians entrust to us, recorded a result of 106 billion, up 4,5%. The increase in multi-line products was very significant, products capable of adapting to changes in economic and financial scenarios, saver preferences and customer expectations over time”.
Non-Life premiums, with premium income of 34,1 billion, increased by 2%, due to a further reduction in motor liability premiums of 4,5% and a positive contribution, equal to almost 6%, from the other classes damage. Total investments came close to 1.050 billion and the portfolio diversification trend continued with the increase in alternative assets.
“We face two years of uncertainty”
Finally, a look to the future. According to Farina, the two-year period 2022-23 presents many uncertainties for the Italian economy and "therefore for insurance companies", due to various factors: the slowdown in demand from savers, fears of an increase in the cost of claims in the elementary classes, in addition to the loss in value of the securities portfolio, due to the sudden rise in interest rates.
"On this last topic, we hope that, in time for the application in the half-yearly reports, the provision, already operational in the three-year period 2018-2020, which sterilizes the fluctuations in the values of assets in the financial statements drawn up in accordance with local accounting standards, will be reiterated". The request is to the Ministry of Economy led by Daniele Franco.
“It would also be advisable, in view of the end of the financial year, to limit the amount to be entered in the non-distributable reserve to only the portion of the capital losses which can actually weigh on the income statement of the companies”, concluded Farina.
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