Abstract
This paper examines the business model of an Italian company (TIS) that manage the claims for non-life insurance companies with innovative solutions. When a policy-holder make a claim for a loss or damage, the insurer may decide either to repair, rebuild or replace the property or to offer a cash settlement. To provide these services, many insurance companies have started developing strategic relationships directly with building firms, repairers, specialist suppliers and project managers, in order to find reliable contractors that will repair or replace the policy holder’s property quickly, with high quality and at a low cost. Opposite to other EU Countries, in Italy many insurance companies are still providing only cash settlement, with higher costs and a higher level of fraud illegal claims risk.
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Notes
- 1.
See this for a more economical concept: C. de Ferra, L’assicurazione: nozioni, concetti, basi matematiche, Etaslibri, 1995, who considers “[…] l’assicurazione come una cessione del rischio da parte di un soggetto più debole a un soggetto più forte. Il contraente, soggetto debole, si libera di un rischio cedendolo alla Compagnia di assicurazione, soggetto forte, ed in cambio versa il premio”.
- 2.
From a legal point of view, the doctrine highlighted that the risk makes up « elemento essenziale del contratto di assicurazione » (Pothier 1842). In fact, considering the Code, article 1895 of the Civil Code recognised « Inesistenza del rischio » sottolinea che “il contratto è nullo se il rischio non è mai esistito o ha cessato di esistere prima della conclusione del contratto”.
- 3.
As we will see later, this reorganisation of the business makes a contribution to containing corruption and fraud, which today is on average higher compared to other similar markets in the EU.
- 4.
There are also multiple products covering pension/social security? Issues in this branch.
- 5.
This data has been processed from source Swiss Re (Sigma n°3/2018—data 2017).
- 6.
Great Britain €3.373, France €3.050, Japan €2.932 and Germany €2.379.
- 7.
124 companies, compared to 57 in the life branch, over 25 mixed companies and 7 insurance companies.
- 8.
Data 2017, This data has been processed from source Ania (National Association of Insurance companies).
- 9.
The life branch income trend tends to be stable, compared to the fluctuating positive and negative trends between 2008 and 2012. The same considerations of trend can be made about the damage branch.
- 10.
The Single Register of insurance and reinsurance intermediaries (RUI) has these categories:
Section A: Agents (19,728 physical/natural people and 8985 companies).
Section B: Brokers (3894 physical/natural people and 1670 companies).
Section C: Direct canvassers of insurance undertakings (4359 physical/natural people).
Section D: Banks, financial intermediaries as per article 107 of the Consolidated Banking Law, stock brokerage companies and Poste Italiane S.p.A.—Services Division of Bancoposta (496 companies).
Section E: Collaborators of the intermediaries registered under sections A, B and D conducting business outside the premises of such intermediaries (176,991 individuals and 12,553 companies are included)
Others: residents abroad (8211 subjects).
- 11.
Agents have 76.3% of the market, brokers 9.3%, direct sales 8% and over the counters at banks 6.1% and others.
- 12.
61.3% of the market, compared to financial consultants 15% and agents 13.9% and others.
- 13.
The European Commission defines Inclusive Growth “[…] strengthening people’s participation through high rates of employment, investing in skills, beating poverty and modernising the job markets, training methods and social security in order to help people to be ready for change and succeeding in building a united society. […] the objective is to guarantee everyone access and opportunity all their lives.” Taken from one of European Strategy 2020s three priorities beyond Intelligent Growth and Sustainable Growth.
- 14.
Directive 2016/97/UE of the European Parliament and Council on 20th January 2016 regarding insurance distribution, and IVASS issued the regulations on 2nd August 2018: Regulation outlines dispositions regarding insurance and re-insurance distribution (applicable from 1st October 2018), Regulation regarding information, advertising and creating insurance products (applicable from 1st January 2019) and Regulation outlines the procedure of imposing administration sanction and dispositions (applicable from 1st October 2018).
- 15.
All the different phases of the work are recorded—from the request for action—to the end of the work: correspondence between the parties, the costs of each phases in the progress of the work, etc.…, and with the aim of identifying the result of the action and after careful analysis and extract statistic data, assisting in putting into place any corrective and specific measures aimed at achieving continuous improvement and especially for future similar action.
- 16.
The service covers the delivery, installation and configuration of goods based on the Insured’s needs, allowing him to save time and receiving specialist consultancy when purchasing.
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Gamba, V., Venuti, F., Forliano, C., Franco, M. (2019). Direct Compensation and Risk Management: A Key Study from the Insurance Sector. In: De Vincentiis, P., Culasso, F., Cerrato, S. (eds) The Future of Risk Management, Volume II. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-16526-0_13
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