The Italian Motor Insurance Market: Will the Recent Interventions Solve the Old Efficiency Problems?

Among the main European countries, Italy continues to be the one with the highest frequency of accidents and the highest average cost of damages. Moreover, there is a relationship between premiums and compensation costs: insurance premiums follow the trend of accident frequency and the average cost...

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Bibliographic Details
Published in:Geneva papers on risk and insurance. Issues and practice 2014-07, Vol.39 (3), p.545-568
Main Author: Porrini, Donatella
Format: Article
Language:English
Subjects:
Automobile insurance
Average cost
Consumer Price Index
Costs
Deregulation
Economics and Finance
Finance
Insurance
Insurance claims
Insurance companies
Insurance fraud
Insurance industry
Insurance markets
Insurance premiums
Insurance providers
Liability insurance
Market shares
Original Article
Policyholders
Premiums
Risk Management
SPECIAL ISSUE ON INSURANCE LAW AND ECONOMICS
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Summary:Among the main European countries, Italy continues to be the one with the highest frequency of accidents and the highest average cost of damages. Moreover, there is a relationship between premiums and compensation costs: insurance premiums follow the trend of accident frequency and the average cost of claims. Therefore, this paper analyses the dynamics of the Italian insurance market in terms of premiums, claims and fraud. It then considers recent public interventions in relation to their efficiency in dealing with the problem of the excessively high level of premiums. Finally, an explanation is found for the weakness of competition and the distributional structure of Italian insurance companies.
ISSN:1018-5895
1468-0440
DOI:10.1057/gpp.2014.15