Latest news of Italy auto insurance industry
As per latest news of Italy auto insurance industry, leading auto insurers have come in conflict with national government who have claimed that insurance companies in Italy have been anti-competitive in their business procedures. In recent times a number of service providers of Italy automobile insurance industry have been fined almost $328 billion.
As expected companies in automobile insurance industry of Italy have denied these allegations. They have also resolved to fight financial penalties imposed on them. As per antitrust authorities in Italy, almost 80 percent of companies of auto insurance industry of Italy have exchanged critical information among each other. This has been done in order to bring about a price fixing plan that would increase prices of policies in Italy auto insurance market.
Antitrust authorities in Italy have also revealed that Italy auto insurance companies have not issued theft and fire coverage services to those consumers who have not bought auto liability coverage services from them.
Associazione Nazionale fra le Imprese Im`prese´, which is trade association of auto insurance services providers in Italy, has retorted that these insinuations are about a cartel that is non existent in reality. As per their opinion, exchange of critical information within companies was an established and normal practice in Italy auto insurance industry. They stressed that it was an established practice at a global level as well as such information is base on which rates are set.
These accusations, on part of Italian government, have drawn flak from financial experts. Maurizio Lualdi, who serves as a financial analyst with London based Credit Suisse First Boston has referred to these allegations as baseless and illogical. He has stressed that Italy auto insurance industry has been a loss making enterprise in last decade.
Italy auto insurance market had been deregulated in 1994. This had led to variations and proliferations in rates, channels and products. In Italy auto insurance claims expenses have been going up at a steady rate and this has led to increase in prices of auto insurance policies in Italy. In Italy auto insurance market 20 percent of automobile accidents end up in auto insurer making payment for personal injury claims.