More trust in the market, lower costs for businesses. This is the recipe proposed by the insurance companies to reduce the prices of motor liability insurance. "We are against the system of minimum discounts", said Aldo Minucci, president of ANIA today, commenting on the innovations introduced by the Government with the Destination Italy decree, which should be converted into law by Parliament in the next few weeks.
PREVENTIVE VEHICLE INSPECTION AND MEDICAL-HEALTH SERVICES
In particular, the Association of Insurance Companies points the finger at two measures included in the provision: the obligation to offer policyholders a preventive inspection of the vehicle and certain contractual clauses which provide for medical-health services paid for by the companies themselves. In both cases, customers have the right to choose, but if they accept the offers, the insurance companies are obliged to apply discounts.
“As well as being contrary to the Community principle of freedom to offer services – Minucci attacked –, these obligations involve additional burdens for businesses, have no significant effectiveness in the fight against fraud and therefore cannot be associated with discounts. They must be eliminated."
BLACK BOXES
The situation is similar with regard to black boxes, the devices that detect the information useful for establishing the causes of accidents. In this case, the insurers are not obliged to propose installation on the cars, but if they choose to do so, they must guarantee customers a 7% savings (calculated on the average premium in the region of residence in the previous year). Not only that: the costs of installation, replacement and portability are totally borne by the companies.
“The Government wants to strictly regulate the use of black boxes, which today sees Italy as the world leader in terms of diffusion – commented Alessandro Santoliquido, president of the Auto Ania commission -. On the contrary, the establishment of compulsory minimum discounts risks limiting the diffusion of this instrument precisely in the market niches where it would be most needed".
COMPENSATION IN SPECIFIC FORM
The last point, the most complex, has to do with the so-called "compensation in specific form". In the event of damage to the vehicles, the insurance companies will be able to have the vehicles repaired in affiliated body shops: if they choose this path, they will be able to avoid paying the pecuniary compensation, but they will have to guarantee the customer a saving of a minimum of 5% to a maximum of 10%. on the insurance premium.
"The novelty proposed by the Government goes in the right direction to reduce the cost of compensation - underlined Minucci again -, through the achievement of economies of scale in the repair chain, greater control over any undue repairs and the emergence of a widespread tax evasion".
However, according to the number one of Ania, "in order to work at its best, this measure needs a transition period that gives companies the possibility to organize the network of approved body shops"; moreover, the companies ask to be able to choose "the territorial areas in which to make the offer".
“CUT COMPENSATION TO REDUCE PRICES”
In general, however, Minucci believes that the only way to significantly reduce motor liability prices is to intervene on the costs of companies, leaving room “for the free dynamics of competition. It is a pity that the government decree does not touch on this matter”. Reducing insurance costs naturally means cutting compensation: according to the Association, "the single table for compensation for serious physical damage must be approved after seven years, a fundamental measure to bring the cost of motor liability in Italy closer to level of other European countries.
COMPARISON OF AUTO TPL, ITALY AND EUROPE
In support of this thesis, today ANIA presented a study commissioned from the consultancy firm "Boston Consulting Group". The analysis shows that, between 2008 and 2012, the average premium by Italian policyholders was 491 euros, almost double (+45%) compared to the 278 euros paid in the same period in the cumulative average of Germany, France, Spain and Great Britain Brittany.
The difference is 213 euros and – underlines ANIA – it can be explained for the most part (126 euros, 60%) with the higher cost paid by the Italian companies to settle claims. Another decisive share (52 euros, 25%) is instead linked to the higher taxation.
“These are choices that are up to the legislator – concluded Minucci -, but if we want to guarantee consumers a very high level of guarantees and protection, this inevitably has repercussions on insurance prices. And you cannot unload the responsibility on companies”.
