Auto insurance rate growth is slowing. As highlighted yesterday, early signs of cooling premiums President Luigi Federico Signorini, These issues were highlighted in the first months of this year during the presentation of the annual report on the activities carried out by IVASS. This trend should be confirmed in the coming months.
Car liability insurance: average premium in May €400
in May The average premium is 400 euros. Although slightly below pre-pandemic levels, they are still on an upward trend compared to 2023. Analyzing the reasons for the rise in agricultural product prices, Signorini said, “We expect the slowdown trend to continue in the coming months.” In the past two years, the finger has been pointed at inflation.
From the Ivass report, we can see that, in general, for cars, The average premium in 2023 is €391 (up 5.8% from the previous year). 32.9 million vehicles were insured, 1.8 million accidents were recorded, with an average cost of €4,646. The average premium for mopeds and motorcycles was €266 (+9.6%). 4.5 million vehicles were insured, 146,000 accidents were recorded, with an average cost of €6,961.
Dissatisfied consumers point the finger at insurers
The slowdown in car insurance rates monitored by Ivass is not enough for Codacons, currently the prices of policies are still rising unnecessarily. “Once the effects of high energy prices and inflation are over, and in the absence of an increase in the accident rate in Italy, car insurance rates should reverse their trend and start falling again,” said Carlo Rienzi, president of the association. On the contrary, Ivass attests that in the first months of 2024, there is still an upward trend, albeit a slowdown, with the average policy currently standing at 400 euros”.
From many aspects I doubt the insurance company. Even if there were no increase in accidents on Italian roads, Shift the consequences of international logistics crisis to the insuredwhich has led to an increase in the price of auto parts, especially spare parts, and an increase in repair times. Codacons concluded that Ivass would be better off focusing its attention on this situation to see if there are market changes or speculation that harm the interests of motorists and policyholders.
What will the insurance industry look like in 2023?
In analyzing the performance of the insurance industry in 2023, Ivass emphasized:
Non-living branches: The collection volume increased by 6.6% annually to 38 billion euros76.6% were through agents, 10.2% through brokers, 8.7% through bank and post office branches, 4.1% through direct sales, and 0.3% through financial advisors. 42.4% involved auto policies, 20.2% involved property insurance, 19.5% involved health insurance, and 10.6% involved general liability insurance.
Branch of Life: Collections decreased by -3.3% to 91.2 billion compared to the previous year, of which 57.4% were made through banks and post offices, 27.4% through agencies and 13% through financial advisors. 70.6% involved revaluation of life insurance policies and 21.7% involved investment-linked policies.
Life insurance premiums account for 4.4% of GDP and non-life premiums for 1.8%. Italy ranks 9th among OECD countries in terms of the importance of the life insurance industry relative to GDP, but only 24th in terms of non-life insurance premiums.