Industry agreements for consumer’s benefit: the Spanish case 1 María Aránzazu del Valle Schaan General Secretary Spanish Private Insurers’ Association

MTPL direct compensation agreement 2

3 Who’s liable?Repairing 45 days Accident What happened in the past

4 MTPL direct compensation agreement Accident 45 days Repairing Who’s liable? Reimbursement 7 days X

5 MTPL direct compensation agreement The agreement’s growing importance

Motor insurance database The problem 6 When good drivers want to change their insurer They need to demostrate that they are as good as they pretend to be

Until 1996, a road accident victim who had only a number plate to spot the vehicle liable had enormous problems to do it That year, a shared database including all insured vehicles and their insurer was set up From this point on, non-liable drivers’ insurers bore the task of spotting liable insurer This has clearly streamlined lots of claims’ management 7 Insured vehicles database

Personal damages assessment system The Spanish solution 8

A brief description of our recent history: In the eighties (Spain joining European Economic Community) local motor insurance had to face a huge increase in liability limits, in order to adapt to European legislation After that, a sort of “court rally” began, with different courts and judges fixing different compensations to similar damages In the nineties, a structured and indicative assessment system was set up on a voluntary basis In 1995, this system was included in a law, thus making it compulsory for courts Some years after, the Constitutional chamber decided that the system is fully compatible with Spanish Constitution 9 Personal damages assessment system

The system virtues: It is not a rigid assessment system: it permits to adapt compensation to circumstances such as age, revenues, etc. It has reduced litigation: less than 5% of cases end up at Court Victims benefit from a secure, equal and just compensation system The system is reformed each 10 years. The present reform (2015) has been fully agreed with consumer and victims’ organisations The system is complemented by a set of agreements with heath services providers 10 Personal damages assessment system

Information to motor insurance clients The Spanish solution 11

Information to motor insurance clients Need to improve the comparability between motor insurance products Standardized prior information notice More information that compulsory requirements Simpler and easy to understand information for consumers not only to be observed by insurers, but by regulators as well 12

Natural and man-made catastrophes The Spanish system 13

14 Natural and man-made catastrophes

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