Rc auto, that’s why insurance in Italy is more salty

Rc auto, that's why insurance in Italy is more salty

The average premium of motor TPL in Italy (tariff premium after taxes) is higher than 90 euros compared to the average of the main four European countries. "The higher price for Italian consumers is explained by the higher cost of claims": numbers, comparisons and analysis from the Ivass report presented on June 18

“In 2019, RC Auto prices fell by 2.7 percent; in the last 6 years the overall decline is around 22 percent and, in the international comparison, the gap has gone from over 200 to 90 euros. However, in various areas of the country, the offer continues to register high prices, especially for younger contractors ".

This was stated by the president of Ivass Daniele Franco, in the annual considerations of the Institute that supervises insurance, according to which "a reorganization of the regulations of the sector can no longer be postponed". The Ivass, explains "is ready to provide its technical contribution in order to increase the efficiency of the market and promote a better distributed price reduction, a better quality of the offer and a greater timeliness of the compensation".

For cars, Ivass recalls with the data released in March, the average premium of third party liability policies in 2019 amounted to 414 euros (-2% compared to 2018). Claims are 6.4% of the policies, with an average cost of 4,186 euros. For mopeds and motorcycles, the average rc premium amounts to 271 euros (+ 2% compared to 2018). Claims are 3.5% of the policies, with an average cost of € 6,302. 23% of the motor liability insurance policies stipulated between October and December 2019 include a black box, with effects of reducing the premium.



The average motor liability insurance premiums, net of tax and parafiscal charges, paid by policyholders in five main European Union countries (Italy, France, Spain, Germany, United Kingdom), were compared for 2014-2018, with an in-depth analysis of the related components (cost of claims, expenses, technical margin). The countries considered constitute 63% of the population and 74% of the Union's gross domestic product.

The data were acquired by the respective Supervisory Authorities and integrated, where necessary, with other official information.

In addition to the different cost of living, the characteristics of the national compensation, health and welfare systems are noted in the price differentials between countries, in particular in the treatment of personal injury (biological and property damage).

Finally, the different degree of penetration of non-life insurance must be taken into account, since higher premium income in non-auto insurance can allow insurers to offer lower rates in the auto sector, using the greater profits that may be present in the other non-life classes. In 2018, Italy remains the last of the five countries as per-capita expenditure for non-motor insurance policies and the first in the motor liability insurance (fig. II.1).

Car rc price structure: the different components

At the end of 2018, the average premium of motor liability insurance in Italy (tariff premium after taxes) was higher than 90 euros than the average of the main four European countries (fig. II.2).

The higher price for Italian consumers is explained by the higher cost of claims (pure premium) for 89 euros and the amount of expenses (acquisition and management overall) for 19 euros; the expected technical margin per policy (net of financial income and gross of the future result of the dismantling of the claims reserve of the 2018 generation), remained negative in Italy (-6 euros; it was -18 euros the previous year) and positive on average in other countries (11 euros). Therefore, the discounted pricing policy of Italian companies continued.

In relative terms, in Italy the component represented by the cost of claims (pure premium) remained above 80%, higher than the average 74% in other countries; the cost of acquisition commissions and administrative expenses is aligned (21.1% in Italy, 21.0% in other countries). In 2018, the reduction of the Italian premium gap with respect to other countries, which has been ongoing since 2012, has continued (fig. II.3). The gap has more than halved in the six years (-55% for 113 euros, table II.1).

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/rc-auto-ecco-perche-in-italia-i-prezzi-sono-piu-salati/?utm_source=rss&utm_medium=rss&utm_campaign=rc-auto-ecco-perche-in-italia-i-prezzi-sono-piu-salati on Thu, 18 Jun 2020 14:30:23 +0000.