Profitability vers Consumer protection Presented by Mariusz W. Wichtowski President Managing Organisation of the International Motor Insurance Card System Under the aegis of the United Nations COUNCIL OF BUREAUX

Is there any contradiction? ″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX

Conflicted bodies ″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX Customers Insurance markets

Customers ″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX Insured persons Victims

Insurance markets ″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX Insurers National Bureaux Guaranty Funds

″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX Origin of MTPL Beginning of XX century Soon compulsory Protection

″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX Population of Europe750 million N o of vehilcles360 million Number of accidentsmillions/year

″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX Insurance Profit vers Protection

″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX Profit welcomed

″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX Risk factors External Internal

Economical crisis Not predictable policy on the national level Low level of the supervision Jurisprudence ″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX External risks

Price war High operation’s costs High commissions Bad organization Lack of experience Short term plans ″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX Internal risks

Who has influence ? ″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX Internal risks

Uninsured driving Fraud ″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX Accumulative risks

High level over 1 billion € claims/year Serious problems on particular markets ″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX Uninsured driving

Less premium Impact on financial stability Negative psychological impact Who is the final payer? ″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX Uninsured driving

Value of the costs Estimation: % of claims paid Who is the final payer? ″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX Fraud

Direct impact on the profitability ″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX Uninsured driving and Fraud

″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX Where is the consumer?

″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium COUNCIL OF BUREAUX Where is the profit?

″We act for the protection of cross-border road traffic victims” 166 Avenue Louise B-1050 Brussels, Belgium Thank you for your kind attention COUNCIL OF BUREAUX