Competition bill, ANCMA: risk of distortive effects on motorcycle policies

Confindustria ANCMA, the National Cycle Motorcycle Accessories Association, returns to the provisions of ddl Competition which extend the mechanism of CARD (Agreement between Insurers for Direct Compensation), which is now joined by Italian insurance companies, including those operating in Italy with registered office in other European countries. The risk of distorting effects that this procedure generates on motorcycle policies due to the rigidity of the lump sum reimbursement mechanism, on which the CARD is based, was highlighted. Average increases of 80% are assumed in the cost of policies for motorcyclists insured outside the CARD, with even more significant peaks in the South, increased risk of insurance avoidance and slowdown of the motorbike market in a positive phase.

The intervention

The system has been shown to perform poorly when applied to accidents involving different categories of vehicles. The company of the injured motorcyclist receives less from the responsible party than the amount corresponds to its insured and this has increased the costs of managing motorcycle accidents for insurance companies, as reported in the note released by Confindustria ANCMA. 
The direct compensation, which dates back to 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. This will subsequently obtain a lump sum reimbursement from the insurance of the driver who caused the accident. A mechanism that has generated positive effects, especially on the timing of compensation. However, as clearly highlighted by a study by the CAMSEF center of LUISS University, the CARD agreement generates perverse outcomes on two-wheeler policies, because the rigidity of the lump sum reimbursement mechanism is not adapted to motorcycle accidents. 
On average, motorcyclists already pay 30% more as a result of the CARD and in particular, if the amendment to the art. is approved. 31 of the competition bill, those who have taken out a policy with foreign companies, over five hundred thousand motorcyclists, will see their premium increase by 80%, the average value of which in Italy is 204 euros.
 In the note released this morning by ANCMA, in light of this, the association highlights that, for two wheels, the CARD logic even moves against the institution of civil liability, as the CARD insured motorcyclist now pays based on the damage suffers and not what it causes. Hence a formal request, with an appeal to the Deputy Minister for Economic Development Gilberto Pichetto Fratin who has assumed responsibility for insurance matters, to modify the provision of the provision under discussion in the Chamber, taking up the statement released.

Image: Confindustria ANCMA