The value of claims paid out motor insurance has been declining in the recent years
Motor insurance grants coverage in case of accidents, injuries, theft, or damage, depending on the type of policy chosen. When an accident occurs, policyholders present a claim to their insurance provider in order to receive compensation for the damage. Motor insurance claims notified on the Italian market declined significantly since 2009, reaching approximately 3.5 million in 2018. Consequently, a decline in motor insurance claims paid also followed. In fact, claims paid on the Italian market decreased by nearly one third, after peaking at over 18 billion euros in 2008. As of 2019, this figure amounted to just over 13 billion euros.The average price for motor insurance has also been declining in Italy despite an increase of insured vehicles
Despite an increase in the number of insured vehicles, the value of gross written premiums has decreased in recent years. The reason behind this is a decline in the average price of motor liability insurance policies. The cost of this type of insurance, however, is influenced by many factors. The first one depends on the policyholder and what kind of coverage they choose. On the other hand, there are also factors that are outside the control of customers. These factors include, among others, gender, age, and location.
