Ania, record 6 billion in catastrophe claims in 2023. Gap between Italy-EU motor insurance premiums falls again, to EUR 36

"In 2023, the insurance industry worldwide paid out almost 100 billion euros for claims related to natural disasters. In Italy, the historical maximum of insured damages was recorded: over 6 billion, of which 5.5 billion caused by atmospheric events and 800 million by the floods in Emilia-Romagna and Tuscany'. Thus the president of Ania, Maria Bianca Farina, in her speech to the association's assembly, pointing out that 'climate change is a crucial challenge. We are witnessing increasingly extreme, frequent and destructive natural catastrophes, which put more and more people and goods at risk'. Italians still protect themselves little, from an insurance perspective, against natural disasters. In fact, only 6% of the 35.3 million existing housing units have insurance cover against these events, despite the fact that 80% of civil dwellings are exposed to a medium to high level of risk from a seismic and hydrogeological instability perspective. As for companies, only 5% have insurance cover, with considerable differences depending on their size. Of the total of over 4.5 million Italian companies, 4% of micro, 19% of small, 72% of medium and 97% of large companies are insured against catastrophes.

'I am aware that in Italy, as in Europe, there is a protection gap that needs to be bridged, with synergetic action by the state and private individuals. And for this we must all do more, each for his part'. Prime Minister Giorgia Meloni said this in her message to the Ania assembly, pointing out that "insurance is an essential component in the planning and choices of citizens and businesses, and contributes to guaranteeing the financial stability of the insured and the economic system as a whole". According to the premier, 'the Italian economy is growing more than other European nations, despite the slowdown in the world economy and the delicate international situation,' but 'the national macroeconomic data are positive and the trend of some indicators, from employment growth to the increase in investments, represent important signs of confidence in the future of our economy. The government 'is determined to make the most of these signals, and to give them continuity'.

In Italy the average premium gap on motor third party liability last year fell to EUR 36, the lowest in years, considering that it was EUR 213 in the 2008-2012 average. The fall in the premium differential paid by Italian motorists is highlighted by the president of Ania, according to whom, after eleven years of reduction in the volume of third-party motor liability premiums, this aggregate rose by 4.3%. The average premium, according to the association's data, has risen from 349 euro in 2022 to 371 euro (335 euro is the average premium in Europe). This growth can be explained by the inflationary dynamic, which was reflected in the cost of claims; however, it was lower than the average in other European countries.

Overall, total investments by insurance companies amounted to almost EUR 960bn, of which around EUR 250bn in Italian government bonds. in 2023, insurance companies again confirmed their position as Italy's largest institutional investor: at the end of the year, investments in life insurance policies accounted for 14% of Italian households' savings. "The results of our sector in 2023 record a total premium volume of 130 billion, in line with the previous year, even though premiums in the life segment fell by 3.5%, determined by the sharp contraction in premiums for unit-linked policies (-32%)," highlights Farina. In the life segment, in particular, the offer of traditional products has been revitalised, with a year-on-year increase in premiums of 9.2% for class I, a dynamic that has made it possible to contain the net outflow of resources in 2023. And "last April, for the first time since the end of 2022, positive net inflows were recorded for traditional policies". There was a different dynamic in non-life business, with premiums increasing by 6.6% compared to 2022. Overall, premiums other than motor third party liability grew by 7.7%, with a very strong progression for health policies.

For insurance companies, 'the composition and standing of corporate bodies are fundamental safeguards for sound and prudent management'. This was explained by the president of the supervisory body for the insurance sector, Luigi Federico Signorini, emphasising that 'on the subject of governance, Ivass looks carefully at the functionality of administrative bodies, with the aim of ensuring their quality and authoritativeness, promoting diversity and internal dialectics, and encouraging pluralism of contributions and the adoption of informed decisions'. In his speech to the Ania assembly Signorini pointed out that 'inspections allow us to assess the concrete effectiveness of governance. This is accompanied by a careful scrutiny of the suitability requirements required by the rules for taking office and of the collective composition of the companies' strategic, administrative and control bodies. Careful and substantive compliance with the provisions of Ministerial Decree 88 of 2022 requires - in the interests of the companies and their shareholders - not just formal, substance-conscious implementation.