Non-life insurance premiums in Italy rose by 6% during the first half of 2022, according to data from Fitch Ratings, owing to strong growth in non-motor lines.
Italian insurers have been increasing their exposure to non-motor in recent years to offset pressure on motor profitability, which still accounts for about 43% of the non-life market premiums.
Non-motor premiums were up 11% through H1, while motor business saw premiums decrease slightly by 0.6%, with average premium rates for motor third-party liability policies falling from €312 in H1 2021 to €303 this year.
This was mainly due to strong competition and customers’ expectation for rebates, Fitch says, although the coronavirus-related discounting initiatives following the implementation of the lockdown measures in Italy were discontinued in early 2021.
Average claims costs continued to grow, fuelled by high inflation and leading to a deterioration in motor combined ratios in H1, and Fitch expects this trend to continue through the second half of the year
Aggregate combined ratios should still remain below 100% at end-2022, it added, with average motor premiums also expected to stabilise by year-end.
Further growth in non-life non-motor premiums in Italy could be threatened by the deterioration of the macroeconomic environment, which is leading to lower disposable income for consumers.