The decline in motor liability prices continues in the third quarter of 2020. The actual price of motor liability policies "was an average of 389 euros, a reduction of just over 5% (20 euros) on an annual basis", communicates IVASS which published the Iper Bulletin with the latest market statistics . The Insurance Supervisory Authority notes that the price reduction trend started in 2013 continues. A phenomenon, he underlines, which has strengthened with the restrictions on movement due to the Covid-19 pandemic.
Here are the main indications that emerged from the bulletin:
After the contraction mainly due to the traffic restrictions in the first months of 2020, the number of subscriptions starts to grow again policies with increases of 4,8 per cent in July and 3,3 per cent in September;
The reduction in prices is more marked in Southern Italy (Catanzaro -8,5 per cent; Crotone -8,0 per cent) than in the provinces of Northern and Central Italy (Bolzano -2,1 per cent; Trento -2,2 per cent hundred);
Continue to narrow the price differential between Naples and Aosta that is of 227 euros (the effective average price in the two provinces is respectively 473 euros and 246 euros), down by 36 percent compared to 2014;
Il 23,2 per cent of policies taken out in the third quarter of 2020 include a premium reduction clause linked to the presence of the black box, whose penetration rate continues to be strongly correlated to the average premium between the provinces and varies from 66 per cent in Caserta to 4,3 per cent in Bolzano;
There is also a high correlation between price trends and market concentration: the reduction in prices is accompanied by the intensification of competition between firms. The Herfindal-Hirschman Index (HHI), used to measure the level of concentration in the market, decreased from 970 in the third quarter of 2014 to 842 in 2020.
Ivass – Hyper Bulletin
