Motor insurance in Italy showing healthy signs of growth

18 Feb 2016

Having seen a significant growth in the past five years, the Italian motor insurance category will continue to be at the top of the non-life segment, fuelled by a widespread adoption of telematics, finds a new report from Timetric’s Insurance Intelligence Center.

Italy's non-life insurance sector has not been able to escape the country's economic woes. Over the review period (2010-2014) the gross written premiums in the sector declined at a CAGR of 2.4%. However, an improving if not completely bright economic outlook is expected to fuel growth with premiums expected to reach EUR29.5 billion by 2020.

Motor insurance led the non-life segment, accounting for 64.0% of the gross written premium in 2014 - a trend which is set to continue due to the growing popularity of telematics and mandatory third-party liability insurance.

It is forecast to remain the largest category in the non-life segment over the next few years. Timetric expects the motor gross written premium to value EUR18.6 billion (US$21.3 billion) in 2019, accounting for 62.9% of the overall non-life gross written premium.

Telematics is gaining traction

Timetric study has shown that Italy is one of the few countries that has a high demand in utilising telematics. There have been a number of tie ups between major insurers and telematics service providers to harness the benefits of the technology. For example, in 2015, Generali acquired MyDrive Solutions - a data analysis company based in the UK - as a complement to its existing work in the telematics field. It shows how focused large insurers are on taking advantage of the possibility to encourage less risky behaviour and drive down claims.

Jay Patel, Insurance Analyst at Timetric comments: "By being able to track and record speeds and distances, telematics has enabled insurers in Italy to price their motor insurance policies more accurately and thus increase the underwriting profits they make on the policies they offer. However, motor insurers who intend to utilise this technology need to consider requirements, particularly related to data analytics, data security and processing."

All information is based on the Timetric report: 'Non-Life Insurance in Italy, Key Trends and Opportunities to 2019'.

Source: Company Press Release