Automobile civil liability, insane rates on the rise: insurance in crisis?

Is insurance also in crisis? TPL cars are on the rise and add a number of additional costs for Italians

A truly shaky period for the Italian economy on which any rise in prices occurs. This time even insurance companies could be in crisis according to statistical estimates.

(@ANSA / MAURIZIO DEGL’INNOCENTI)

On Insurance Day 2022, the president of Ania Maria Bianca Farina spoke of a “new season” of RC Auto with a clear reversal of the trend in prices that have already increased, albeit gradually. During the conference, there was talk of the lack of reforms that make “the whole system more sustainable”, so the average cost of claims at the end of the year will be “in strong growth”. It will therefore be difficult without a government maneuver to stop price increases and to think of being able to grant affordable policies.

A dizzying increase in prices is felt in the daily life of the Bel Paese and will soon also affect the automotive TPL, due to the economic slowdown and record inflation, even claims will suffer a considerable increase in costs. Premiums, which have not yet undergone an increase, will soon do so and the adjustment of insurance rates will be slower and more gradual.

A look back at 2022: insurance in crisis?

Cars withdrawn from the market (Pixabay)

During the Insurance Summit, the president of Ania had already presented data which did not appear at all reassuring with a drop in shares on the stock market equal to 8.7%. In addition to a noticeable reduction in demand, it has been found that many policyholders may find themselves in the obligatory position of having to liquidate their investments. Nevertheless, during the year, the insurance industry showed strong resilience in handling and managing the particular period.

On Insurance Day 2022, ANIA’s president invited colleagues and insurance representatives to be optimistic, despite the fact that there are now many more unknowns in the sector and that concern is therefore legitimate. The reasons for the surge in prices are many, on the one hand there are the claims which have started to climb in recent months, on the other hand there is also the increase in the cost of spare parts with more than 10% increase.