Enrico Caruso
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

Enrico Caruso

on

  • 1,740 views

 

Statistics

Views

Total Views
1,740
Views on SlideShare
1,708
Embed Views
32

Actions

Likes
0
Downloads
29
Comments
0

2 Embeds 32

http://www.insuranceworld.gr 30
http://insuranceworld.gr 2

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • SIC = Sistema Informativo Controlli auto CON.S.A.P. = CONcessionaria Servizi Assicurativi Pubblici S.p.A. When there is a collision between two vehicles, the party not liable, or only partly liable, applies for indemnity directly to his own insurance= company, which is required to provide all necessary assistance in examining the case and to fully inform the insured of his rights. Further, the new system provides that the insured/damaged party take any legal action for damages against his own insurer, not the other party’s.
  • FRANCE IN 2006: 90% of French insurance companies have signed the IRSA convention(*). This convention (existing since the 70's) is a direct settlement agreement of TPL motor claims. It applies even if there is a BI claim. These are the main points concerning IRSA convention : If only two cars are involved and if the damages are less than 6500 €, there is a fixed compensation of 1204 € to settle the claim. If the damages are higher than 6500 €, the compensation is equal to the real cost of the damage. The responsibilities between drivers are assessed according to a table. This particular case is related to the IDA convention (IDA convention is included in IRSA convention). In the case of a chain accident, 50% of the damages are submitted to recovery. In the case of a pileup, one of the insurance company appointed by the convention is in charge to evaluate the responsibilities of all drivers. The recovery is equal to the real cost of the damage. The ceiling of 6500 € and the fixed compensation of 1204 € are revised every year by the GCA which is a French association of insurance companies. Compensation mechanism is based on the comparison of the average cost of claims paid between one company to the other. All French insurance companies have signed the IRCA convention since 2002. This convention is a direct settlement agreement of BI claims. It applies for all BI claims with less than 5% disability. The claim is settled directly between the insurance company and its client. The compensation is estimated by reference to similar cases judged in court. Once the settlement is over, the insurance company is reimbursed by the company of the driver at fault inside a price range defined in the IRCA convention. The responsibilities between drivers are assessed according to a table. The price range is revised every year by the GCA. SPAIN IN 2006 There’re two agreements between Companies (Cide/Ascide and SDM), of free adhesion with the following characteristics: Cide/Ascide: - This one is actually signed by more than 95 % of the Insurance Sector - Claims with only two vehicles involved - Collision among vehicles involved must exist. - It is applied only for material damages, limit of 100.000 Euros. - 52% of vehicle accidents are handled by this agreement. SDM: - This one is actually signed by 45 % of the Insurance Sector - It contemplates cases where there is no collision, more than two vehicles are involved, and other prejudices. - Bodily injuries are excluded Both agreements are based on an automatic monthly compensation of paying-recovering amounts between companies. Another sectorial agreement is "Mixed Units": - This one is signed by 80 % of the Insurance Sector - It regulates payments to third party when a vehicle truck and tow produces damages (70% truck and 30% tow) - It is used for material damages and bodily injuries.
  • The Italian Parliament released with the September 7th, 2005 Legislative Decree n. 209, the Insurance Code, concerning indemnity and payment procedures. Articles 149 and 150 introduced the so called Direct Compensation . The new code instituted basic minimum rules, leaving the main matters of application to implementing rules to be contained in a Presidential Decree Decree 254 of 18 July 2006 (published in Gazzetta Ufficiale No. 199, 28 August 2006) enacted the implementing regulations for Direct Compensation, pursuant to Article 150 of the Insurance Code. The Decree completes the body of rules governing the new Direct Compensation procedure. The implementing regulations Decree 254 of 18 July 2006 (published in Gazzetta Ufficiale No. 199, 28 August 2006) It is marked by the very great number of obligations imposed on insurance companies in terms of the organizational apparatus for the operation of the system (the CARD Convention – Insurance Convention on Direct Compensation) and the settlement of monetary obligations between participants. The decree institutes a system of fixed compensation based on pre-determined average costs set at the start of each year and applying to all accounting settlements concerning accidents during the year. Passengers direct settlement provided by the Insurance Code came into force from 1.1.2006, while CID since 01/02/2007 Other purpose was to promote the conciliation , involving only damaged parties and insurers, providing expressly that in case of acceptance of the claim adjustment offer (and in this case only) and in compliance with the time limits (30 for report form jointly signed, 60 for non-jointly signed, or 90 days in case of bodily injury), the amount of the compensation shall not include fees for professionals that the damaged party may have consulted
  • Direct Compensation applies on condition that both vehicles are identified and regularly insured; it is in effect for damage to vehicles and goods transported and for minor personal injury to the driver not at fault (or only partially at fault). The procedure also applies when passengers have suffered injury, but with a special procedure under the law, whereby the injured party must apply to the insurer of the vehicle in which he was riding. Unlike the old amicable accident report, direct Compensation applies even when the report form (the so-called “blue” form) is not signed jointly by both drivers or policyholders. However, joint signature does facilitate determination of liability and speed up settlement.
  • Direct Compensation does not apply in cases of: – accidents occurring outside Italy; – accidents involving more than two vehicles; – accidents involving a motor scooter not carrying the new type of licence plate; – accidents involving agricultural machinery (until 1 February 2008); – serious personal injury to the driver.
  • ANIA usa i sistemi SIC = Sistema Informativo Controlli auto SITA = Sistema Informativo Targhe Assicurate CON.S.A.P. = CONcessionaria Servizi Assicurativi Pubblici S.p.A. When there is a collision between two vehicles, the party not liable, or only partly liable, applies for indemnity directly to his own insurance= company, which is required to provide all necessary assistance in examining the case and to fully inform the insured of his rights. Further, the new system provides that the insured/damaged party take any legal action for damages against his own insurer, not the other party’s.
  • ALTRE DIFFERENZE L’impresa gestionaria è tenuta anche alla gestione di eventuali azioni di rivalsa di enti mutualistici, assicuratori privati (anche kasko) e datori di lavoro. Viene meno l’ obbligo di perizia per i danni ai veicoli. L’esistenza del danno deve comunque essere provata dalla gestionaria
  • Nella CARD edizione 2007 (e quindi valevole per i sinistri con accadimento 1.2.2007- 31.12.2007 ) i risarcimenti operati dalla Gestionaria relativi ai danni al veicolo, al conducente ed alle cose trasportate vengono rimborsate con la corresponsione di un forfait unico stabilito dal Comitato tecnico previsto dal regolamento di attuazione dell’art. 150 del C.d.A., forfait unico differenziato per tre macroaree territoriali per la componente relativa al danno a cose ( € 1.800; € 2.000; € 2.300 ). Per i danni ai trasportati (CTT): L’importo viene restituito per intero per sinistri con più di due veicoli, fuori Stanza di Compensazione, dopo il pagamento la compagnia si rivale. Per sinistri tra due veicoli si utilizza invece il sistema di forfait (per ogni trasportato), plafond e franchigia . Inizialmente il plafond sul quale applicare la franchigia doveva essere di 25.000 €, poi fu abbassato a 5.000 all’entrata in vigore della CARD. Forfait per singolo trasportato e suoi oggetti: € 3.250 nel 2007, sarà poi € 3.300 nel 2008 e 2009 La stanza di compensazione per la restituzione di importi e forfait è automatica per sinistri tra due veicoli rientranti nelle casistiche di applicabilità della CARD/CID, negli altri casi la richiesta di rimborso è manuale e deve essere fatta entro 12 mesi dal pagamento tramite appositi uffici creati nelle varie compagnie (SARC - Servizio Aziendale di Riferimento per le Convenzioni). NOTA La decisione di ritoccare il sistema dei forfait è stata assunta in relazione anche a talune criticità riscontrate nell’applicazione del forfait unico 2007 ai sinistri subiti dai motoveicoli che costano, in media, molto di più in quanto caratterizzati da una maggiore incidenza dei danni fisici (pari, secondo dati ANIA, al 50% dei sinistri rispetto al 16% delle auto o al 7% degli autobus) nonché della loro relativa gravità. Ne è derivata una insufficienza sistematica del forfait integrato 2007 a compensare i danni liquidati dalle imprese ai propri assicurati danneggiati in qualità di motociclisti, tale da poter determinare forti aumenti (fino al 50% secondo le imprese) delle polizze per tale tipologia di veicoli. Al fine di evitare tale rischio, il Comitato Tecnico ministeriale – nel ritenere che la formulazione dell’art. 13 del D.P.R. n. 254/2006 non consente l’adozione di forfait differenziati per categorie di veicoli così come auspicato dall’ANIA - ha deliberato che i sinistri accaduti nel 2008 siano compensati attraverso due costi medi distinti fra i danni materiali e quelli fisici.
  • Nella CARD edizione 2008 , e quindi con applicazione della relativa normativa a tutti i sinistri con anno di accadimento 2008 , vengono previsti due forfait differenziati: Forfait danno a cose : i risarcimenti operati dalla gestionaria relativi al veicolo assicurato ed alle cose trasportate vengono rimborsati mediante il forfait danno a cose, sempre differenziato per tre macroaree territoriali Gruppo territoriale 1: € 1.670 (1.658 nel 2009) Gruppo territoriale 2: € 1.373 (1.419 nel 2009) Gruppo territoriale 3: € 1.175 (1.162 nel 2009) Forfait danno conducente : i risarcimenti relativi al danno alla persona del conducente del veicolo assicurato vengono invece rimborsati con il seguente criterio: se la richiesta di rimborso (importo effettivamente pagato) è inferiore od uguale ad € 5000 (plafond) viene riconosciuto alla gestionaria un forfait ( € 3250 nel 2008 e 2009 ) gravato da una franchigia assoluta ( € 500 ); il forfait non viene riconosciuto quando il danno effettivamente liquidato al conducente sia inferiore od uguale alla franchigia. se la richiesta di rimborso (importo effettivamente pagato) è superiore al plafond di € 5.000 la gestionaria riceve in rimborso il forfait, importo maggiorato dell’importo eccedente detto plafond e gravato di una franchigia calcolata in percentuale (10%) sull’ammontare complessivo del risarcimento, con un limite minimo di € 500 ed un massimo di € 20.000 Di seguito alcuni esempi di rimborso con plafond franchigia forfait per danni persona: Danno pagato 400 nessun rimborso Danno pagato 600 rimborso 2.750 (3.250 -500) Danno pagato 4000 rimborso 2.750 (3.250-500) Danno pagato 32.000 rimborso 27.050 (3.250 + ((32.000-5.000)) - 3.200) Nella CARD edizione 2010 , il Comitato tecnico ministeriale ha deliberato un nuovo sistema di rimborso mediante forfait, prevedendo per i sinistri con anno di accadimento 2010 : un forfait per il rimborso dei danni ai veicoli, alle cose trasportate e alle lesioni del conducente (attenzione si ritorna al rimborso forfetario del 2007 con un unico forfait in caso di liquidazione al veicolo comprensivo anche delle lesioni del conducente, sempre fino al 9%, con la novità che vi sarà ora un doppio forfait differenziato per categoria di veicolo, uno per i veicoli ed altro per i motoveicoli/ciclomotori, in sostanza la differenza sarà tra due ruote e quattro ruote), sempre differenziati per tre macroaree geografiche; Forfait Autoveicoli : Gruppo territoriale 1: 2.152 euro; Gruppo territoriale 2: 1.871 euro; Gruppo territoriale 3: 1.589 euro; Forfait motoveicoli : Gruppo territoriale 1: 4.077 euro; Gruppo territoriale 2: 3.789 euro; Gruppo territoriale 3: 3.410 euro; un forfait per i danni eventualmente subiti dal trasportato su autoveicolo pari a 3.150 euro per i danni d’importo pari o inferiori al plafond di 5.000 euro, con una franchigia assoluta pari a 500 euro; per i danni d’importo superiore al plafond di 5.000 euro, il rimborso comprende il forfait di 3.150 euro + il differenziale tra il danno effettivamente risarcito e detto plafond – una franchigia del 10%, con il massimo di 20.000 euro, da calcolarsi sull’importo del risarcimento. un forfait per i danni eventualmente subiti dal trasportato su motoveicolo pari a 4.011 euro per i danni d’importo pari o inferiori al plafond di 5.000 euro, con una franchigia assoluta pari a 500 euro; per i danni d’importo superiore al plafond di 5.000 euro, il rimborso comprende il forfait di 4.011 euro + il differenziale tra il danno effettivamente risarcito e detto plafond – una franchigia del 10%, con il massimo di 20.000 euro, da calcolarsi sull’importo del risarcimento. RISERVE CARD DEBITORE Nel corso dell’anno per i sinistri CARD Debitori, che pervengono attraverso il flusso informatico, il preventivo/riserva viene calcolato automaticamente dal Sistema (Mappa Sinistri e SINTESI) e corrisponde al forfait stabilito dalle regole della Convenzione. Partite di danno CARD Debitore /CTT in Stanza di Compensazione: due volte l’anno (maggio e novembre) perviene, dalla Stanza, un flusso informatico per l’aggiornamento delle riserve. Il SARC, durante l’anno, al pervenimento delle schede informative modello CTT06 da parte delle Compagnie Gestionarie, per le partite di danno CTT con riserva superiore a 25.000, provvede al relativo aggiornamento nell’applicativo gestionale.
  • NOTA SUL CALO TARIFFE - Cerchiai dice in un intervista a Panorama : “Il Codacons dice che negli ultimi 5 anni l'aumento dell'rc è stato del 50 per cento. Che cosa devo pensare? Che il 50 per cento è un dato inventato. Le spiego. I nostri conti sono fatti su due numeri: gli incassi delle compagnie e il numero dei veicoli circolanti. Rapportandoli lei ha la spesa degli italiani per assicurarsi. I consumatori fanno i conti sulle tariffe che non sono i prezzi effettivi perché non calcolano gli sconti e i bonus per chi non fa incidenti. E siccome gli incidenti coinvolgono l'8 per cento dei veicoli vuole dire che il 92 per cento degli italiani ha un bonus e paga meno rispetto all'anno precedente. Loro misurano quanto gli italiani pagherebbero se fossero applicati i prezzi di listino, noi misuriamo quanto gli italiani pagano davvero considerando il bonus e lo sconto e il cambio di compagnia.” COMPLICAZIONE CONTENZIOSO Secondo l’art. 149, … il danneggiato non è obbligato a proporre l’azione giudiziaria nei confronti della propria compagnia d’assicurazione ma, può, in alternativa, (con un’interpretazione costituzionalmente orientata) scegliere, ex articolo 144, di evocare in giudizio la compagnia del responsabile civile e quest’ultimo quale litisconsorte necessario. E, si badi bene, lo può fare anche perché la compagnia d’assicurazione del responsabile civile è stata già messa in mora in quanto l’articolo 149 obbliga di inviare la c.d. messa in mora anche a detta compagnia, anche se per conoscenza - art 145 comma 2. In assenza di espresse modifiche, non appare dubitabile che il danneggiato ha la facoltà di agire in giudizio nei soli confronti del danneggiante (avendolo, però, preventivamente messo in mora) o congiuntamente con la sua compagnia d’assicurazione, ai sensi degli articoli 2043 e 2054 c.c. (assicuratore già messo in mora ex articolo 149 e 145) (in tal senso confrontare Cass. Civ. Sezione III 28/5/07 n.12376). Una volta intrapreso il percorso risarcitorio di cui agli articoli 149 e 141 citando in giudizio la propria compagnia di assicurazione o quella del vettore, non si può invece estendere l’azione al responsabile civile perché gli articoli citati non lo prevedono. La presenza del responsabile civile nel giudizio diretto e nel giudizio nei confronti della Compagnia di assicurazione del terzo trasportato, lungi dal semplificare, avrebbe l’effetto di complicare l’iter processuale. Si pensi, ad esempio, all’ipotesi in cui il convenuto spieghi domanda riconvenzionale, oppure chieda la chiamata in garanzia del proprio assicuratore, oppure chieda la sua estromissione dal giudizio per carenza di legittimazione passiva e la condanna alle spese di giudizio, in forza, proprio, dell’art. 149 che, si ripete, lo esclude. La legittimazione passiva del responsabile civile all’interno dell’azione diretta e dell’azione del terzo trasportato, contro l’intenzione del legislatore, vanificherebbe la finalità della norma ed anzi, porterebbe a procrastinare la durata dei processi e, ciò, in contrasto con l’esigenza di garantire la celerità e concentrazione del giudizio prevista dall’articolo 111 della Costituzione. (source: http://www.altalex.com/index.php?idnot=42497)
  • N.B.: Il campione è variabile nel corso degli anni e non rappresenta mai il 100% dei dati di tutte le compagnie italiane (in genere più dell’85%) dal 1° gennaio 2009 è obbligatorio per tutte le imprese comprendere nella tipologia CARD i sinistri avvenuti tra propri assicurati, per i quali vi siano le caratteristiche di applicabilità della procedura di risarcimento diretto. Managed Claims frequency: Con l’introduzione del risarcimento diretto, incentrato anche sulla liquidazione dei danni subiti dai propri assicurati, la totalità dei sinistri accaduti nel ramo R.C. Auto è ottenuto come somma dei: sinistri che sono stati gestiti nell’ambito della convenzione stessa e che sono relativi appunto ai sinistri subìti dai propri assicurati e che vengono liquidati dalla propria compagnia in qualità di impresa gestionaria; sinistri che sono stati trattati fuori dalla convenzione CARD e gestiti secondo l’ordinario schema di r.c. auto (danni provocati dai propri assicurati a terzi). Si tratta del totale dei sinistri “gestiti” da un’impresa di assicurazione; rapportando tali sinistri ai veicoli-anno, si ottiene la frequenza dei sinistri gestiti. I sinistri possono essere gestiti da un impresa sia come CARD che NON CARD, in questo caso conta due, quindi la frequenza appare più alta rispetto ai sinistri accaduti ( Caused claim frequency ) che è basata sull’avvenimento (in calo sul totale motor al contrario del managed, causa aumento gestione CARD).
  • The average cost of claims is derived by dividing the total cost of claims (paid and reserved) by their number. The indicator takes account both of payments made in final or partial settlement and of compensation payments that companies expect to make in the future for claims that have been reported but whose amount has yet to be determined (reserved amounts). Claims frequency defined as the ratio between the number of claims incurred and reported during the accident year that have given or will give rise to compensation and the number of vehicles exposed to the risk of claim generating accident

Enrico Caruso Presentation Transcript

  • 1. Enrico Caruso Responsible for Group Non-Life Technical Activity He ad Office Assicurazioni Generali S.p.A. ( Italy ) Friday, 3 September 2010
  • 2. Hydra Island - Greece, September 3 rd , 2010 DIRECT SETTLEMENT LESSONS LEARNED FROM THE MARKET - ITALY Enrico Caruso Assicurazioni Generali - Trieste
  • 3. Agenda
    • Brief History.
    • The new Direct Compensation.
    • The “Forfait” Flat Rate Reimbursement system.
    • General considerations and Data.
    • Appendix.
    AGENDA
  • 4. THE FORMER DIRECT INDEMNITY AGREEMENT AMONG COMPANIES
    • The C.I.D. (Convenzione Indennizzo Diretto=Direct Indemnity Agreement) was a procedure which allowed the assured to be compensated directly by the Insurance Company of its own vehicle rather than that of the guilty.
    • This was based on an agreement signed between private companies participating on a voluntary base
    • The Direct Indemnity Agreement history
    BRIEF HISTORY May 15 th , 1978
    • The C.I.D. procedure started
    • The maximum reimbursement rate was L. 500,000 (€ 258.23)
    1992
    • Settlement limit was raised to L. 10,000,000 (€ 5,164.57)
    2000
    • Settlement limit for vehicle damages became unlimited
    2004 till January 31th, 2007
    • The agreement started to manage injury and carried properties
    • It was possible to manage, on the same claim, damages included and not included in Convention
  • 5. THE C.I.D. DIRECT INDEMNITY AGREEMENT PROCEDURE Damaged party Mandatary Company Claims reporting Claim registration Claim survey Counter-part coverage confirmation Receive reimbursement Claim settlement Reimbursement Debtor Company ANIA Accident Data Exchange ANIA Clearing House Liable Party BRIEF HISTORY
  • 6. EUROPEAN COUNTRIES POSITIONING ON D.I.A. IN 2006 BRIEF HISTORY COUNTRY Scope MD BI Requirements Main recovery rules
    • Impact on TPL claims (%)
    France  
    • MD (IRSA): 2 cars involved, chain accident, pile-up
    • BI (IRCA): disability <5%
    • Valid also without responsibility assumption
    • MD: flat reimbursement of 1,204 € for claims <6,500 €, entire sum if >6,500 €
    • BI: one-by-one recovery in price range
    73% Spain 
    • 2 cars involved
    • Valid with responsibility assumption by one party (CIDE) or without (ASCIDE)
    • Flat reimbursement for each claims (741€ in 2004, updated annually), up to a monthly maximum of 100,000 €
    70% Italy  
    • MD (CID): 2 cars involved, responsibility assumption needed
    • BI (CID): claims under 15,000 €; responsibility assumption needed
    • Entire reimbursement
    22%
  • 7. Agenda
    • Brief History.
    • The new Direct Compensation.
    • The “Forfait” Flat Rate Reimbursement system.
    • General considerations and Data.
    • Appendix.
    AGENDA
  • 8. THE INSURANCE CODE AND THE NEW DIRECT COMPENSATION THE NEW DIRECT COMPENSATION TITLE
    • The Italian Parliament released in 2005 the Insurance Code, and in 2006 enacted the implementing regulations for Direct Compensation, pursuant to Article 150 of the above Code. Purpose of the Regulator was:
    • Simplify the current regulatory framework in the field of private insurance.
    • Shorten the settlement procedures
    • Stimulate competition among Companies and assure customer service, through better efficiency, settlement speed etc.
    • Perform an Antitrust action: companies could not learn details of competitors (the amount actually paid on its behalf by the damaged party’s insurer)
    • Exclude from the offer procedure the costs of professional assistance - except for medical consultation – so the Insurers have to be a consultant for policyholder
    • Promote contractual innovations, with the inclusion of clauses covering damages to the vehicle in a “specific form”, expressly indicated in the policy (e.g. use of agreed Bodyshops), giving in return to policyholders reductions in premium costs.
    THE INTERVENTION OF THE PARLIAMENT IN ITALY
  • 9. THE NEW “CARD” DIRECT COMPENSATION APPLICABILITY CONDITIONS Claims involving no more than two vehicles Also without jointly sign Collision with trailer hooked to tractors Part of the vehicle dislodged from the structure Bodily injuries with P.D. up to 9% THE NEW DIRECT COMPENSATION
  • 10. THE NEW “CARD” DIRECT COMPENSATION NON APPLICABILITY CONDITIONS Claims occurring outside Italy Boats Vehicles without license plate Claims with trailers not hooked to tractor THE NEW DIRECT COMPENSATION
  • 11. THE NEW “CARD” DIRECT COMPENSATION COMPULSORY PROCEDURE Damaged party Mandatary Company Claims reporting Claim registration Responsibility agreement Claim survey Counter-part coverage confirmation Receive flat rate Claim settlement Flat rate reimbursement Debtor Company ANIA Accident Data Exchange CONSAP Clearing House Liable Party THE NEW DIRECT COMPENSATION
  • 12. MAIN DIFFERENCES BETWEEN C.A.R.D. AND C.I.D. THE NEW DIRECT COMPENSATION FEATURES C.I.D. (before february 1 st , 2007) C.A.R.D. (after february 1 st , 2007) Application
    • It is an agreement among Companies: the Insured is entitled to claim damages to their Insurance Company
    • It is mandated by the law: the Insured is obliged to claim damages to its Insurance Company
    Reimbursement among companies
    • Full amount: the Mandatary Company recover from Debtor the entire payment (Clearing House system), with light penalties
    • Mandatary Company is reimbursed by the Debtor with
      • CARD-CID: a Flat Rate Reimbursement (forfait)
      • CARD-CTT: an amount calculated on a Flat Rate Reimbursement (forfait), a Plafond, a Deductible and the damage amount
    Driver bodily injuries settlement
    • Possible only if the report form (the so-called “blue” form) is signed jointly by both drivers or policyholders: the non guilty injured driver is reimbursed from its own Company
    • Possible although without jointly signed claim report: the non guilty injured driver is reimbursed from its own Company in presence of single sign
  • 13. Agenda
    • Brief History.
    • The new Direct Compensation.
    • The “Forfait” Flat Rate Reimbursement system.
    • General considerations and Data.
    • Appendix.
    AGENDA
  • 14. THE FLAT RATE REIMBURSEMENT
    • The “principle of risk reversal” has been recognized as one of the distinctive features resulting from CARD scheme: it means that Insurance Companies should no longer focus so much on caused losses, but especially on handled losses due to the application of pre-established flat rate reimbursements.
    • In 2007 (introduction of Direct Compensation - art.13, D.P.R. n. 254/2006) it was a single flat rate reimbursement split by geographical area but without any distinction by type of vehicle or damage.
    • In particular, higher frequency of losses with physical damage were not considered.
      • E.g.: % of losses with physical damage statistics split by type of vehicle:
        • 50% for mopeds & motorcycles
        • 16% for private cars
        • 7% for buses
    • The economic impact was negative especially for the Companies with a number of mopeds & motorcycles higher than the Market: flat rate reimbursement was lower than real compensations (and without any consideration regarding the different geographical areas)
    THE “FORFAIT” FLAT RATE REIMBURSEMENT SYSTEM
  • 15. THE EVOLUTION OF FLAT RATE REIMBURSEMENT
    • 2008 : to avoid huge increase of average premium (especially for mopeds & motorcycles), the Technical Committee defined new flat rate reimbursements distinguishing personal injury and property damage, but still not recognizing them in different way according to the type of vehicles. As in 2007, for Property damage there was the split according to 3 different geographical group .
    • There still were negative results for the Insurance Companies as the weight and the impact of physical damage split by different type of vehicle was not considered.
    • 2010: new flat rate reimbursement were established by the Technical Committee based on the criteria of differentiation detected by the Decree of the Minister of Economic Development on December 11 th , 2009
    • The compensation is currently split as follows:
      • a single flat rate reimbursement - CARD CID - for minor personal injuries to the drivers and for damage to the vehicle insured and property carried - different for two main categories of vehicle: &quot;mopeds and motorcycles&quot; and &quot;other vehicles”. This flat rate reimbursement, in respect to the component of property damage, is also different according to three different geographic macro - areas
      • a single flat rate reimbursement for each passenger - CARD CTT - for personal injury and property carried also distinguished for types of vehicles as described above.
    THE “FORFAIT” FLAT RATE REIMBURSEMENT SYSTEM
  • 16. Agenda
    • Brief History.
    • The new Direct Compensation.
    • The “Forfait” Flat Rate Reimbursement system.
    • General considerations and Data.
    • Appendix.
    AGENDA
  • 17. CARD DIRECT COMPENSATION STRENGTH AND WEAKNESS POINTS
    • STRENGTH
    • Increase of direct managed claims from 22% in 2006 to 81% in 2009
    • Increase of settlement speed, from 65% in 2006 to 69% in 2009
    • Better efficiency, together with the pervasive use of unique small bodily injury compensation table up to 9%, helped to stabilize and decrease the risk premium in 2005-2009
    GENERAL CONSIDERATIONS AND DATA
    • WEAKNESS
    • Complication of litigation procedures and their length (e.g.: when the defendant explains counter-claim or asks in Guarantee Call its Insurer)
    • In June 2009 the Italian Constitutional Court declared optional the lawsuit to its insurer
    • Practical claims management problems (e.g.: SARC offices- special internal offices for contacts among companies -, partial use of Clearing House automatic compensation, etc.)
    • Increase of submerged speculation on small damages, with a value less the flat rate reimbursement sum: this could cause in aggregate, a slight increase of the overall costs of compensations
  • 18. SOME DATA ABOUT CARD GENERAL CONSIDERATIONS AND DATA MOTOR TPL MARKET
  • 19. Hydra Island - Greece, September 3 rd , 2010 DIRECT SETTLEMENT LESSONS LEARNED FROM THE MARKET - ITALY Enrico Caruso Assicurazioni Generali - Trieste
  • 20. Agenda
    • Brief History.
    • The new Direct Compensation.
    • The “Forfait” Flat Rate Reimbursement system.
    • General considerations and Data.
    • Appendix.
    AGENDA
  • 21. LITIGATION AND SETTLEMENT SPEED (MOTOR TPL MARKET) APPENDIX Source: &quot;Italian Insurance in 2009-2010&quot; (ANIA ) SETTLEMENT SPEED Percentage of not null Motor TPL claims settled the same year of occurrence LITIGATION All pending Civil Lawsuits on motor TPL - every Status of Case and Courts MOTOR TPL MARKET
  • 22. CLAIM FREQUENCY AND AVERAGE COST (MOTOR TPL MARKET) APPENDIX CLAIM AVG COST total cost of claims (paid and reserved) by their number CLAIMS FREQUENCY the ratio between the n. of claims not null and the n. of vehicles MOTOR TPL MARKET Source: &quot;Italian Insurance in 2009-2010&quot; (ANIA )
  • 23. INCIDENCE OF DIRECT SETTLEMENT IN MARKET MOTOR TPL OPENED CLAIMS APPENDIX Source: &quot;Motor Focus n. 17&quot; (ANIA ) Note: the CARD/NO CARD sum could be more than 100, a claim could be both CARD and NO-CARD MOTOR TPL MARKET
  • 24. SETTLEMENT SPEED EVOLUTION – BREAKDOWN BY TYPE OF VEHICLE APPENDIX MOTOR TPL MARKET