Competition Bill, ANCMA: if the provisions remain unchanged, there could be increases in policies

Confindustria ANCMA (National Association of Cycle and Motorcycle Accessories) focuses on the concept of CARD, Agreement between Insurers for Direct Compensation. One aspect that thearticle 27 of the Competition bill with the extension of this procedure, which Italian insurance companies now participate in, also to those operating in Italy with registered office in other European countries. We would like to point out the possible risk of a considerable increase in the cost of insuring a motorcycle, which revolves around the aforementioned acronym.
In a note released today by the association, it was specified: "the innovation introduced by the provision would not only paradoxically reduce competition in the motorcycle sector, but would produce a generalized increase in the cost of motorcycle policies, with a foreseeable risk of circumvention of the insurance obligation".

Topic under discussion

The press release recalls that direct compensation, adopted in 2007, provides that the driver who suffers an accident is not compensated by the insurance of the person responsible for the accident, but by his own. The latter will subsequently obtain a lump sum reimbursement from the insurance of the driver who caused the damage. A system that over time has had positive effects on insurance premiums and, in particular, on the timing of compensation in the car sector. However, taking again the widespread text, “as clearly highlighted by a study commissioned by ANCMA at LUISS University and the trend of the insurance market, the CARD convention generates distorting effects on two-wheeler policies, because the rigidity of the lump sum reimbursement mechanism does not adapt to motorcycle accidents , which also present, among other things, a high rate of personal injury".
It is on this aspect, therefore, that the association focuses on this occasion. In the event that the provisions of the Competition Bill remain unchanged, ANCMA estimates that without the "no CARD" offer in the motorcycle sector, cost increases could be in the double-digit percentage range, with an impact on policies stipulated in the South. Thus, with the start of hearings in the Senate Industry Committee on the approved text by the Council of Ministers last November, is indicated again in the text: “the association is preparing to ask to allow foreign companies to continue selling «NO Card» insurance only for 2-wheelers or to also allow Italian companies not to join the CARD exclusively for motorcycle policies, as already happens in France ”.

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