UNINSURED VEHICLES SPECIFIC ISSUES IN ITALY Mr. Stefano Re 50th Anniversary October 1st 2015.

UNINSURED VEHICLES SPECIFIC ISSUES IN ITALY

Mr. Stefano Re

50th Anniversary October 1st 2015

Uninsured driving

Introduction

Bodies involved in the motor market:

MCTC, Motorizzazione Civile (official authority for vehicle registration and technical inspection)

PRA, (public registry of car owners)Police authorities (enforcement of

the laws on deemed Insurance cover)

ANIA, Association of Italian Insurers

Introduction: Competent bodies:

CONSAP: public body with functions (among others) of Guarantee Fund for the victims of road accidentsCompetent for claims in Italy arising from accidents caused by uninsured vehicles

UCI: National Bureau for cross border traffic of motor vehicles, competent to- handle claims occurred in Italy arising from the circulation of vehicles registered and insured abroad;- compensate claims in Countries signatories of Section III of the Internal Regulations, arising from accidents caused by Italian uninsured vehicles

ItalyMTPL law code and Road Traffic code

provisions:

All motor vehicles, including trailers, which are deemed to bear a registration plate must be insured against MTPL

Exclusions: vehicles used or parked in private areas (private loans, garages, car-dealer shops, airports, etc.)

Italy: MTPL law code and Road Traffic code provisions

All motor vehicles must show a “vignette” printed by the Insurer with indication of the registration plate and date of expiry of the cover

All motor drivers must carry in the vehicle an insurance certificate

The above provisions are in force until 15 October 2015

Italy: MTPL law code and Road Traffic code provisions

Italy:MTPL law code and Road Traffic code provisions

In case of uninsurance: - vehicle seized immediately - penalty raised against the driver from € 841,00 up to € 3.336,00 (according to the vehicle and expiry of the last insurance period)

Italy:MTPL law code and Road Traffic code provisions

If a new policy is purchased within 15 days or the vehicle demolished at cost of the owner within 30 days, the penalty is reduced down to 25% To receive back the vehicle it is necessary to show a new policy with at least 6 months validity and to pay another amount for the days in which the vehicle was “parked” in a depot and other administrative costs

Italy: MTPL law code and Road Traffic code provisions

In case of uninsurance and falsified documents (vignette and/or certificate), the vehicle is seized, the driver is indicted for falsification and jailed from 6 to 12 months, his/her driving licence suspended for 1 year

Even if the driver can prove that he/she did not falsify the document but purchased them “in good faith” from an illegal agent, he/she still bears liability for un-insurance driving

Italy: MTPL law code and Road Traffic code provisions

In case of uninsurance and falsified documents (vignette and/or certificate), the vehicle is seized, the driver is indicted for falsification and jailed from 6 to 12 months, his/her driving licence suspended for 1 year

Even if the driver can prove that he/she did not falsify the document but purchased them “in good faith” from an illegal agent, he/she still bears liability for un-insurance driving

Italy: motor vehicles dataMotor vehicles registered by

Motorizzazione Civile as of 201343.946.758

Out of 44 mln vehicles about 1 mln out of circulation but still registered(unsold used cars, exported, stolen, destroyed or dismantled vehicles but still officially registered )

UNINSURANCE LEVEL IN ITALY

13

Area INSURED VEHICLES

UNINSURED VEHICLES (EST.)

TOTAL VEHICLES IN CIRCULATION

UNINSURED

RATE

North 20.922.669 1.172.311 22.094.980 5,3% Center 9.404.200 829.798 10.233.999 8,1% South 10.095.768 1.522.011 11.617.779 13,1%

TOTAL ITALIA 40.422.637 3.524.121 43.946.758 8,0%

Sergio Desantis – Servizio Attuariato, Statistiche e Analisi Banche Dati – ANIA

YEAR 2013

Data collected from local police authorities

courtesy of ANIA – Italian Motor Insurance Association

In 2012 the estimate was about 3,1mln uninsured vehicles (7%)In 2014 still unofficial data report about 3,9 mln uninsured vehicles (8%)

Reasons for uninsurance

• High premiums • Bad attitude towards Insurance• Ignorance about Insurance• Poor enforcement of laws• Easy way-out in case of troubles

Cost of Uninsured driving in 2013 (irrespective of year of the accident)

2012 Overall amount of claims reserves (RBNS + IBNR) Euro 1.179.000.000,00

2013 Overall amount of claims reserves (RBNS + IBNR) Euro 1.271.000.000,00

Paid Compensation Euro 148.000.000,0

Overall liability to Guarantee Fund Euro 240.000.000,00

Data source: courtesy of CONSAP

UCIIn its capacity of Handling Bureau:

In 2014 opened 46.483 claims for compensation out of which 41.210 handled by correspondents

handled 5.281 claims directly out of which 1.024 concerned uninsured vehicles

CLAIMS ABROADIn its capacity of Guaranteeing

Bureau in 2014 UCI took in charge 366 claims provoked in Countries signatories of Section III of the Internal Regulations by Italian uninsured vehicles (-15,3% in respect of 2013)

Uninsured vehicles: number of claims reported abroad over the last 10 years

Total number 4088

2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

50

100

150

200

250

300

350

400

450

500

Uninsured vehicles: distribution of claims by Country over the last 10 years

A B BG CYHR DK

FINF D UK GR IR

L LV LT L M N NL PL P CZ SK ROSR

BSL

O E SCH H

0

50

100

150

200

250

20052006200720082009201020112012201320142015

Uninsured vehicles: distribution of claims by Country over the last 10 years (top 8)

A B F D GR RO E CHAUSTRIA BELGIUM FRANCE GERMANY GREECE ROMANIA SPAIN SWITZER

LANDOTHERS

0

50

100

150

200

250

2005200620072008200920102011201220132014

Uninsured vehicles: amounts reimbursed to Handling Bureaux over the last 10 years (by year)

€ -

€ 500,000

€ 1,000,000

€ 1,500,000

€ 2,000,000

€ 2,500,000

€ 1,297,138 € 1,388,442

€ 1,743,132

€ 1,288,884

€ 1,620,241

€ 1,485,533

€ 1,603,641

€ 1,845,095 € 1,920,531

2006 2007 2008 2009 2010 2011 2012 2013 2014

Reimbursements to handling Bureaux over last 10 years, by year

AUSTRIA

BELGIO

BULGARIA

CROAZIA

DANIMARCA

FINLA

NDIA

FRANCIA

GERMANIA

GRAN BRET

AGNA

GRECIA

IRLA

NDA

LETT

ONIA

LITUANIA

LUSS

EMBURGO

MALTA

NORVEGIA

OLANDA

POLO

NIA

PORTO

GALLO

REPUBBLIC

A CEC

A

REPUBBLIC

A SLO

VACCA

ROMANIA

SERBIA

SLOVEN

IA

SPAGNA

SVEZ

IA

SVIZ

ZERA

UNGHERIA

-

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

201220112010200920082007200620052004

Reimbursements to handling Bureaux over last 10 years, by Country (top 8)

FRANCIA GERMANIA GRAN BRETAGNA

GRECIA ROMANIA SPAGNA € -

€ 200,000.00

€ 400,000.00

€ 600,000.00

€ 800,000.00

€ 1,000,000.00

€ 1,200,000.00

€ 1,400,000.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

False green cards: number of claims reported over the last 10 years

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

20

40

60

80

100

120

140

55 55

102

123

86

78

53

36 3531

False green cards: number of claims reported over the last 10 years (by year and Country)

AL BiH BG YU FYROM MA MD RO RUS SCG TN TR UA0

10

20

30

40

50

60

20042005200620072008200920102011201220132014

ROMANIAnumber of claims arising from the circulation of uninsured Italian vehicles in Romania

2007 2008 2009 2010 2011 2012 2013 20140

50

100

150

200

250

300

Amounts reimbursed to BAAR over the past 10 years

2007 2008 2009 2010 2011 2012 2013 2014 € -

€ 200,000.00

€ 400,000.00

€ 600,000.00

€ 800,000.00

€ 1,000,000.00

€ 1,200,000.00

Actions to fight uninsurance

Actions to fight uninsurance

15 October 2015

The law decree “liberalisations” n. 1/2012 conv. into Law 27/2012 and its implementing regulation decree n. 110/2013

foresees the coordination of public and private databases handled by MCTC and ANIA

The “vignette” disappears Police checks insurance cover onlineRoad traffic cameras (speed-traps, LTZ, etc.)

collect reg. plates which may be remotely controlled

Actions to fight uninsurance

A camera on a road in Rome, during the first 2 hours of activity allowed to notify 100 penalties out of 600 vehicles checked: among these, 36 concerned uninsured driving and 48 missing technical survey.

Un-insured vehicles may be found even remotely

Actions to fight uninsuranceUninsurance and insurace fraud are often close relatives

AIA, Archivio Informatico AntifrodeNew huge database managed by IVASS the public body with functions of Supervisory Authority on finance, banking and insurance activity

The database collects info from several different databases managed by public and private bodies:

AIA: contributing DBsMCTC vehicle registrations, driving licences, State: population anagraphic registry,Tax Agency: anagraphic registryPolice: declarations of theft, criminal recordsINPS: National Social Insurance records INAIL: injuries records ANIA: claims reported to Insurers, claims

history reportCONSAP: claims reported to the GFUCI: claims involving foreign vehicles

New challenge for the Insurance market Also the vehicle claims history report was

dematerialised Necessity to check databases before issuing

a new contractNecessity to update databases in real time Opportunity to have real-time information

about claims reported to previous insurer close to expiry date

Opportunity to cross-check other databases to verify status of new customers

Opportunity to save money by reducing printed documents (except the green card!)

Thank you for your attention and… drive insured!

[email protected]