Insurance, agencies’ collections are booming: but cars have nothing to do with it. Continuous damage, enormous profits

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Insurance, collections are growing – source depositphotos.com – Gerusalemmemotori.it

Insurance agencies’ business is growing, but not thanks to cars: here’s why and what the problems are.

Between many obligations that every motorist must respect also stands out that ofinsurance. Although a large part of the cars circulating in our country are not covered by insurance, this is an obligation to which the police pay particular attention, and Being caught driving while not in compliance is a big risk from the point of view of sanctions, which are particularly severe for this infringement which unfortunately many continue to underestimate.

Signing a contract is mandatory, we said, to protect not only themselves, but also other people traveling on the road from any damage caused to things or people during an accident (but there are many policies that can be chosen). There are many possibilities for signing an insurance contract. In Italy there are thousands of insurance agenciesbut today, especially online ones, which are particularly convenient, and also insurances taken out through banks and direct companies are gaining ground.

Despite this ruthless competition, the data arriving from insurance agencies tells of a rapidly growing market, having overcome the crisis that had characterized recent years. But how does auto insurance drive growth?

Insurance agency revenues are growing

What pushes the takings towards the other is above all the progressive growth in non-motor damage collections, which will soon also be accompanied by the obligation to cover catastrophes which will concern businesses throughout Italy. In 2023, 42% of Italian insurance agencies have seen a net improvement in profitabilitywhile only 18% faced a worsening.

Above all, growth was driven by regions of northern and central Italywhile southern Italy and the Islands showed more modest growth.

Non-motor insurance, agency revenues are growing – source depositphotos.com – ufficiomotori.it

How insurance companies must change to keep up with the times

Revenues are increasing, but so are costs: in general, the growth was 55% as regards consumption, 20% for services, and 18% when it comes to labor costs. On the other hand, insurance agencies today are faced with a decidedly more competitive context compared to a few years ago. If car damage saw a decline (from 21.4 billion euros the previous year they collected 16.5 in 2023), things instead improved for non-car damage (from 18.2 to 25.1 billion of Euro).

And for the future? Growth will likely continue, however not all agencies may be able to capitalize on it. Insurance agencies will have to face the challenge of technological evolution and create a multi-channel system to keep up with the times.

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