Non-life 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.
Analysts note that 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.
In parallel, 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
But aggregate combined ratios should still remain below 100% at end-2022, it added, with average motor premiums also expected to stabilise by year-end.
At the same time, 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.
