UNINSURED VEHICLES SPECIFIC ISSUES IN ITALY Mr. Stefano Re 50th Anniversary October 1st 2015

Uninsured driving

Introduction Bodies involved in the motor market: MCTC, Motorizzazione Civile (official authority for vehicle registration and technical inspection) PRA, (public registry of car owners) Police authorities (enforcement of the laws on deemed Insurance cover) ANIA, Association of Italian Insurers

Introduction: Competent bodies: CONSAP: public body with functions (among others) of Guarantee Fund for the victims of road accidents Competent for claims in Italy arising from accidents caused by uninsured vehicles UCI: National Bureau for cross border traffic of motor vehicles, competent to - handle claims occurred in Italy arising from the circulation of vehicles registered and insured abroad; - compensate claims in Countries signatories of Section III of the Internal Regulations, arising from accidents caused by Italian uninsured vehicles

Italy MTPL law code and Road Traffic code provisions: All motor vehicles, including trailers, which are deemed to bear a registration plate must be insured against MTPL Exclusions: vehicles used or parked in private areas (private loans, garages, car- dealer shops, airports, etc.)

Italy: MTPL law code and Road Traffic code provisions All motor vehicles must show a “vignette” printed by the Insurer with indication of the registration plate and date of expiry of the cover All motor drivers must carry in the vehicle an insurance certificate The above provisions are in force until 15 October 2015

Italy: MTPL law code and Road Traffic code provisions

In case of uninsurance: - vehicle seized immediately - penalty raised against the driver from € 841,00 up to € 3.336,00 (according to the vehicle and expiry of the last insurance period)

Italy: MTPL law code and Road Traffic code provisions If a new policy is purchased within 15 days or the vehicle demolished at cost of the owner within 30 days, the penalty is reduced down to 25% To receive back the vehicle it is necessary to show a new policy with at least 6 months validity and to pay another amount for the days in which the vehicle was “parked” in a depot and other administrative costs

Italy: MTPL law code and Road Traffic code provisions In case of uninsurance and falsified documents (vignette and/or certificate), the vehicle is seized, the driver is indicted for falsification and jailed from 6 to 12 months, his/her driving licence suspended for 1 year Even if the driver can prove that he/she did not falsify the document but purchased them “in good faith” from an illegal agent, he/she still bears liability for un-insurance driving

Italy: MTPL law code and Road Traffic code provisions In case of uninsurance and falsified documents (vignette and/or certificate), the vehicle is seized, the driver is indicted for falsification and jailed from 6 to 12 months, his/her driving licence suspended for 1 year Even if the driver can prove that he/she did not falsify the document but purchased them “in good faith” from an illegal agent, he/she still bears liability for un-insurance driving

Italy: motor vehicles data Motor vehicles registered by Motorizzazione Civile as of Out of 44 mln vehicles about 1 mln out of circulation but still registered (unsold used cars, exported, stolen, destroyed or dismantled vehicles but still officially registered )

UNINSURANCE LEVEL IN ITALY 13 Area INSURED VEHICLES UNINSURED VEHICLES (EST.) TOTAL VEHICLES IN CIRCULATION UNINSURED RATE North ,3% Center ,1% South ,1% TOTAL ITALIA ,0% Sergio Desantis – Servizio Attuariato, Statistiche e Analisi Banche Dati – ANIA YEAR 2013 Data collected from local police authorities courtesy of ANIA – Italian Motor Insurance Association In 2012 the estimate was about 3,1mln uninsured vehicles (7%) In 2014 still unofficial data report about 3,9 mln uninsured vehicles (8%)

Reasons for uninsurance High premiums Bad attitude towards Insurance Ignorance about Insurance Poor enforcement of laws Easy way-out in case of troubles

Cost of Uninsured driving in 2013 (irrespective of year of the accident) 2012 Overall amount of claims reserves (RBNS + IBNR) Euro , Overall amount of claims reserves (RBNS + IBNR) Euro ,00 Paid Compensation Euro ,0 Overall liability to Guarantee Fund Euro ,00 Data source: courtesy of CONSAP

UCI In its capacity of Handling Bureau: In 2014 opened claims for compensation out of which handled by correspondents handled claims directly out of which concerned uninsured vehicles

CLAIMS ABROAD In its capacity of Guaranteeing Bureau in 2014 UCI took in charge 366 claims provoked in Countries signatories of Section III of the Internal Regulations by Italian uninsured vehicles (-15,3% in respect of 2013)

Uninsured vehicles: number of claims reported abroad over the last 10 years Total number 4088

Uninsured vehicles: distribution of claims by Country over the last 10 years

Uninsured vehicles: distribution of claims by Country over the last 10 years (top 8)

Uninsured vehicles: amounts reimbursed to Handling Bureaux over the last 10 years (by year)

Reimbursements to handling Bureaux over last 10 years, by year

Reimbursements to handling Bureaux over last 10 years, by Country (top 8)

False green cards: number of claims reported over the last 10 years

False green cards: number of claims reported over the last 10 years (by year and Country)

ROMANIA number of claims arising from the circulation of uninsured Italian vehicles in Romania

Amounts reimbursed to BAAR over the past 10 years

Actions to fight uninsurance

15 October 2015 The law decree “liberalisations” n. 1/2012 conv. into Law 27/2012 and its implementing regulation decree n. 110/2013 foresees the coordination of public and private databases handled by MCTC and ANIA The “vignette” disappears Police checks insurance cover online Road traffic cameras (speed-traps, LTZ, etc.) collect reg. plates which may be remotely controlled

Actions to fight uninsurance A camera on a road in Rome, during the first 2 hours of activity allowed to notify 100 penalties out of 600 vehicles checked: among these, 36 concerned uninsured driving and 48 missing technical survey. Un-insured vehicles may be found even remotely

Actions to fight uninsurance Uninsurance and insurace fraud are often close relatives AIA, Archivio Informatico Antifrode New huge database managed by IVASS the public body with functions of Supervisory Authority on finance, banking and insurance activity The database collects info from several different databases managed by public and private bodies:

AIA: contributing DBs MCTC vehicle registrations, driving licences, State: population anagraphic registry, Tax Agency: anagraphic registry Police: declarations of theft, criminal records INPS: National Social Insurance records INAIL: injuries records ANIA: claims reported to Insurers, claims history report CONSAP: claims reported to the GF UCI: claims involving foreign vehicles

New challenge for the Insurance market Also the vehicle claims history report was dematerialised Necessity to check databases before issuing a new contract Necessity to update databases in real time Opportunity to have real-time information about claims reported to previous insurer close to expiry date Opportunity to cross-check other databases to verify status of new customers Opportunity to save money by reducing printed documents (except the green card!)

Thank you for your attention and… drive insured!