The insurance brokerage market - Italy

1.2 A booming global market

According to the Swiss Re Institute's World Insurance Sigma, total premiums are expected to exceed $*,*** billion in ****-**. The United States has the highest premiums in both life and non-life insurance, with a payout of almost $*,*** billion.

Total worldwide premiums World, ****-****, in billions of dollars Source: ****

The increase is more pronounced for non-life insurance payouts, which will grow at a rate of *.**%, while the premium growth rate for life insurance was -*.**% during the period under review (***). In Europe, life insurance generates over $*** billion in premiums, while non-life insurance generates just $***.* billion. Premiums are highest in the UK, Germany and France Life and non-life insurance premiums World, **** - ****, in thousands of billions of USD Source: ****

In ****, life insurance premiums written in the USA were valued at USD ***.* billion. Non-life insurance premiums written in the U.S. amounted to $*.* trillion in the same year, but unlike most countries, this figure includes basic health coverage this means that the United States is more than $*.* trillion ahead of second-place China, with non-life premiums of $***.** billion.

World's leading direct life and non-life insurance premium-producing countries in ****, in terms of premiums World, ****, in billions of USD Source: ****

The importance of insurance intermediaries varies from country ...

1.3 Slow growth in Italy's insurance market

Italy's insurance market has experienced cyclical waves of growth and decline since the **** crisis. After a strong downward trend since ****, the market has slowly begun to grow, reaching a total value of *** billion euros in ****, before falling back to *** in ****.

Premiums received in Italy Italy, ****-****, in billions of euros Source: ****

Insurance premiums are split betweenlife and non-lifeinsurance. The value of non-life insurance premiums remained constant from **** to ****, with minimal changes over the years, reaching **. *% of total premiums in ****. In contrast, life insurance premiums fell by **. *% in just two years, from **** to ****, and have continued to decline since, reaching a value of €**.* billion in ****. In addition, it's important to note that life insurance premiums still account for around three-quarters of total premiums.

Breakdown of premiums by type Italy, ****-****, in billions of euros Source: ****

All categories of insurance intermediaries show a slight year-on-year decline, from ***,*** registered employees at the end of **** to ***,*** at the end of ****. interestingly, they are more likely to operate as individuals than as legal entities: at the end of ****, there were **,*** individuals working as agents versus *,*** legal entities; *,*** individuals working as brokers versus *,*** legal entities; and ***,*** individuals versus **,*** legal entities in the "other" category. added to these ...

2.1 Summary of demand factors

The European insurance market is extremely diverse. Over the last few decades, the number of European insurance intermediaries has fluctuated to meet the demands of different countries' populations, making it difficult to identify a general trend.

In Italy, the number of insurance intermediaries fell slightly between **** and ****, while the size of the overall market grew by **.*%. Demand for insurance intermediaries is closely linked to the following segments.

2.2 Italy's population continues to age

Since brokers account for *.*% of the non-life insurance market, the main segments being motor, health and property insurance, it is particularly important to examine trends in these sectors in detail in order to understand the demand for insurance brokers.

The number of motor vehicles in Italy is a direct factor in the demand for insurance because, under Italian law, any vehicle circulating in a public space must be protected by an insurance policy. by an insurance policy, which covers damage caused to third parties involved in a possible road accident up to a maximum level, known as the liability ceiling.

The term "motor vehicle" includes cars, mopeds, motorcycles, buses, streetcars, trucks, vans and tractors. The number of motor vehicles in Italy has increased over the last decade and, in ****, the total number of cars on the road was **,***,*** (***).

Moreover, in recent years, the car-sharing market has contributed to an increase in insurance demand. By ****, more than a million rented vehicles were on the road, with total sales of over ** billion euros. [***]

Passenger car registrations Italy, ****-****, in units Unrae

Despite the increase in the number of vehicles on the road, the number of vehicles involved in road accidents has fallen. Over ...

2.3 Car traffic decreases and environmentally-friendly transport increases thanks to Covid-19

Legislative measures put in place by the Italian government to limit the spread of Covid-** have reduced the mobility of citizens, and therefore car traffic. As a result, the number of road accidents also fell between February and May **** compared with the previous year, resulting in greater profitability for insurance companies. They can now afford to negotiate lower premiums with insurance brokers.

In addition, although car traffic has fallen as a result of Covid-**, Italian demand for environmentally-friendly transport has risen as a result of the restrictions. A study by Confindustria Ancma, the national association for mopeds, motorcycles and accessories, confirms that following the end of containment, sales of traditional motorcycles and scooters more than doubled in ****, reaching an impressive **% increase, which translates into Italians purchasing around ***,*** traditional motorcycles and scooters.

Insurance companies immediately began offering new policies covering bikes and scooters, which are not yet compulsory by law. This could be an opportunity for insurance brokers to become key players in a new market niche. This is why Ania, the Italian association of insurance companies, is calling on the government to make insurance compulsory for all these means of transport, for safety reasons. [***]

2.4 Insurance is changing the world of insurance

The term"In surTech" is used to define companies, usually start-ups, that use technological innovations, such as artificial intelligence or blockchain, to improve the efficiency of the current insurance industry model and increase savings. The term comes from the combination of the words "insurance" and "technology" and was coined at the same time as the term "FinTech".

The importance of InsurTech in the European insurance market continues to grow. The entire traditional value chain has been affected by the emergence of these new players and the new business models they have introduced. In most cases, their innovations stem from a new product offering or the creation of new concepts, such as a community of policyholders. Many players have also entered the segment by creating insurance websites that automatically advise customers. Sometimes, however, the use of technology to distribute insurance products disrupts the market. Indeed, InsurTech players focus on strategic channels that have long been ignored by traditional players.

The fact that many insurers act asintermediaries reflects the dynamic nature of the sector. These include brokers who offer innovative distribution solutions in collaboration with traditional insurers. In the EMEA region, they account for almost **% of InsurTechs**. These new players are taking advantage ...

2.5 The credit broker

Credit mediation is a booming business,an intermediary activity whereby a broker brings borrowers and lenders together, without using his or her own funds to initiate the loans. The role of brokers is therefore crucial in this type of transaction, as they are able to bring borrowers and lenders together, seeking the best solution in terms of the borrower's financial situation and interest rate. The main advantages of this type of brokerage are the time and effort saved during the mortgage application process, as well as the potential for significant savings over the term of the loan.

An important feature of thecredit intermediary is that he or she carries out his or her activity without being bound to any of the parties involved. The mediator's independence is thus preserved. No relationship of collaboration, representation or dependence can therefore exist between the parties. A credit mediator regularly carries out the following activities:

Consultation ; Preliminary examination of credit applications; Formulation and forwarding of credit applications to lenders; Negotiating loan terms with potential lenders

Dimensions of credit brokers:

The different sizes according to which brokerage firms are divided are as follows:

Micro: *-* employees Small : *-** employees Medium: **-** employees Large: **-*** employees Very ...

2.5 Request for credit mediation services

At the end of ****, the credit mediation company ** Max has published a report containing the most important data on the credit mediation market. These include a profile of those who use credit mediation to apply for a mortgage. The most important data are summarized below:

Type of applicant Italy, ****, in Source: ****

Among the percentage of singles using a mortgage broker (***), the breakdown by gender is as follows:

Gender breakdown of loan applicants Italy, ****, in Source: ****

Age of applicants :

Age of applicants Italy, ****, in Source: ****

According to the report, among these age groups, the **-** segment saw the biggest increase, with +*. *% year-on-year. Employment of loan applicants :

Type of contract for loan applicants Italy, ****, in Source: ****

Type of purchase: According to the **Max report, **.*% of Italians take out a loan for the purchase of their first home, while only *.*% do so for the purchase of a second home.

The habits of Italian consumers regarding the services offered by financial agents were also analyzed ina survey carried outby OAM in****. The survey used a sample of *** subjects with incomes ranging from * to over ***,*** euros, varied levels of education (***).

The survey revealed the respondents' level of knowledge of the financial activities agent:

Level of agent ...

3.1 Number of Italian insurance intermediaries down slightly

In ****, Italy had ** domestic insurance companies and * representatives of non-EEA (***) companies, which contributed **% of premium collection. The remaining **% was collected by *** EEA insurance company representatives and **** non-EEA companies providing free services. Between **** and ****, the number of domestic companies gradually decreased from *** to **, a **% drop over the decade.

Distribution of insurance companies operating in Italy (***) Italy, ****-**** Source: ****

Italy leads the European market in terms of the number of insurance intermediaries. In fact, Italy is the country with the largest number of insurance intermediaries, followed by Germany and the Czech Republic. Together, they account for **% of the total number of intermediaries registered in the EEA. These figures can be explained by the historical development of the intermediation market, but also by the registration methods implemented by the respective governments.

The number of Italian insurance intermediaries registered in Rui (***) to ***,*** . The "other" category accounts for the majority of intermediaries. This category represents around **% of the total number of intermediaries in Italy.

The total number of Italian intermediaries registered with IVASS fell slightly due to stricter regulatory requirements that led to their cancellation. In addition, recent regulatory changes have led to the registration of both "agents" and "insurance intermediaries" (***).

Intermediari registrati in Italia suddivisi ...

3.2 The Italian insurance market is highly concentrated

The Italian insurance market is highly concentrated. The top five insurance companies hold a significant share of the market, with non-life and life insurance accounting for **.*% and **.*% respectively. If we extend this analysis to the top ten companies, these shares rise to **.*% and **.*%. It is interesting to note that the non-life insurance market is more concentrated than the life insurance market.

The top five insurance groups in Italy are: first, the Generali Group with **.* billion euros and a share of around **% of the total market; second, Intesa SanPaul, with a share of around **% of the total market.in third place, Intesa SanPaolo Vita withpremium income of **.* billion and a market share of **.*%.**.*% of the market, in third place we find the Allianz Italia group with **.* billion euros in premium income and **.*% market share, and Poste Vita, now in fourth place, with **.* billion euros in premium income and around **% market share. Finally,in stable fifthplace is the Unipol group, with **.* billion euros in premium income and around *% of the market. [***].

Market share of the top * insurance companies Italy, ****-****, in Source: ****

As far as insurance intermediaries are concerned, the annual report by ANIA (***).

Market share of life insurance intermediaries Italy, ****-****, in Source: ...

3.3 The industry's return on equity is rising

In the aftermath of the **** crisis, return on equity for the entire Italian sector was negative, reaching a low of -*.*% for the life sector and -*.*% for the non-life sector. For example, over the ****-**** period, ROE in the life sector rose from a low of -*.*% to an all-time high of **.**. Furthermore, in ****, life sector ROE increased significantly to **.*% and exceeded non-life sector ROE. In ****, ROE for the life segment decreased significantly to -*%, while that for the non-life segment increased compared with ****, reaching *.*%.

evolution of ROE (***) in life and non-life insurance Italy, ****-****, in Source: ****

3.4 Main players in the brokerage and insurance agent sector

Insurance brokers are classified under the following ateco code: **.**.**. Insurance agents refer to the following ateco code: **.**.**. These two codes represent the category of those engaged in the activities of agents and brokers (***) in the sale, negotiation or solicitation of life annuities and insurance and reinsurance policies.

To give an overview of the market for these two categories, two tables with the ** players in the two professional categories, with different size characteristics, will be illustrated below.

4.1 Overview of insurance offers

In the insurance sector, the main distinction is between life and non-life insurance. These categories can be further divided into the following macro-zones and branches:

In particular, the following trends can be observed on the supply side:

Enrichment of the offering in the mobility sector, with traditional products being replaced by digital devices and security services, also in response to legislative requirements; Increase in the number of customizable products with extended warranties, additional services and coverage to share with family or friends in the transportation sector; Increased availability of instant travel insurance cover that can be purchased online; The development of modular and flexible insurance cover for property, natural disasters and digital business risks; The enhancement of cyber insurance coverage for households, professionals and businesses against the risks of cyber-attacks, fraud, data and information theft; Expanding the range of health insurance policies extended to third parties, regardless of family structure or cohabitation; The emergence of products to protect the insurance needs of voluntary, cultural and recreational activities; The emergence of products for the agricultural sector, targeting specific crops, followed by remote methods using satellite technology and making the system parametric;

4.2 Motor insurance policies lead the non-life insurance category

If we analyze the share of non-life insurance policies by macro-zone, we see that motor insurance policies account for almost half of the total value, or **.*%. This is followed by property and health policies, each accounting for around **% of the total.

Distribution of non-life insurance policies by macro-area Italy, ****, in Source: ****

Amore detailed analysis of non-life insurance offerings reveals that motor insurance policies alone will account for **. *% of the total in ****. While retaining a significant weighting in non-life business (***), written premiums in motor insurance will fall by -*.*% compared with ****. The *.*% decline in motor and watercraft liability premiums is contrasted by a *.*% rise in land vehicle premiums.

Breakdown of motor sales Italy, ****- ****, in % of total Source: ****

For passenger cars, the average premium in **** is *** EUR. **.* million vehicles are insured, for which *.* million claims are recorded, with an average cost of *,*** euros. For mopeds and motorcycles, the average premium is *** euros (***)[***]. Average price of motor insurance in Italy, ****-**** Italy, ****-****, in € Source: ****

According to a survey carried out in February ****, almostone in three Italians aged ** or over who hold a car insurance policy say their annual insurance premium costs between €*** and €***, regardless of their region of residence. However, the proportion ...

4.3 Life insurance products

Among life insurance products, class I policies account for almost **% of the market, followed by class III (***) and other smaller insurance solutions.

Share of life insurance products by type Italy, ****, in Source: ****

When a customer approaches an insurance broker to take out life insurance, the broker analyzes the customer's risk profile and assesses the most cost-effective insurance cover for the customer among the proposals on the market. In many cases, he or she may enter into negotiations with the insurance company and try to negotiate a more advantageous contract for the client. Once the policy negotiations have been completed, the insurance broker receives a commission on the transaction. Sometimes it's the shareholder who pays the commission, but in most cases it's the insurance company that pays the commission, so customers don't have to pay the broker's commission directly.

4.4 New offers to combat the Covid-19 pandemic

The insurance industry has introduced new measures to support the industry and users during the COVID-** pandemic. These measures include the suspension, extension and deferral of premiums for life, non-life and automobile policies. They also include the freezing of all actions to collect unpaid premiums and deductibles, the extension of existing cover with specific clauses, and the inclusion of daily or lump-sum payments in insurance policies. Lastly, they are concerned with offering additional services and new products.

Companies have also responded to the health emergency by adapting their offer and introducing new products for businesses and families to cope with the consequences of the pandemic. Some companies have temporarily extended to their customers, free of charge, benefits and services already included in their individual and group insurance policies. Others have extended to their customers, holders of health insurance policies providing benefits for hospitalized patients, the inclusion of daily allowances even in the event of quarantine at home, if the quarantine is positive for COVID-**. At the request of the population group most affected by the virus, one company has extended the insurable age for health cover from ** to **.

In the travel sector, some companies have extended their coverage for reimbursement of ...

5.1 Italian insurance regulations

Legislative Decree ***/****, which transposed EU Directive ****/**/EEC on intermediation, established the new Private Insurance Code, replacing all previous legislation relating to the insurance sector. On October **, ****, ISVAP (***) published regulation no. * on the figure of the insurance intermediary, which defines the rules governing access to the activity, rules of conduct, areas of competence and the conditions required to be able to practice. This regulation was subsequently amended and supplemented by regulation no. **** of July *, ****. The Code brings together all insurance regulations, including the definition and regulation of intermediaries' activities

From the point of view of operators, it has been established that any person - natural or legal - wishing to carry out insurance and policy intermediation activities must be registered in the "Single Electronic Register of Insurance and Reinsurance Intermediaries" (***), published directly by IVASS and divided into * sections

Section A: insurance agents Section B: brokers Section C: direct producers Section D: banks, sims, financial intermediaries and the Italian Post Office Section E: brokers operating on behalf of intermediaries listed in sections A, B and D, but outside their premises

The legislator went on to lay down the rules of conduct that intermediaries must observe in the course of their business, with a ...

5.2 Requirements to become an insurance broker

IVASS The Istituto per la Vigilanza sulle Assicurazioni (***) is the Italian authority responsible for supervising and issuing rules for all insurance entities in Italy. It is also responsible for defining the conditions under which brokers may be entered in the Italian register of insurance intermediaries.

For an individual, these conditions are as follows:

Enjoyment of civil rights; Good reputation; Pass the test ofgood repute; Not be registered as an insurance expert; Must be a member of the Guarantee Fund; Not be a civil servant in a full-time employment relationship; Not to have close links with natural or legal persons that prevent IVASS from exercising its supervisory powers under Article ***(***) of the Code.

For a company, these conditions are as follows:

Have their registered office in Italy; To have entrusted legal representation and responsibility for distribution activities to at least one natural person entered in section B of the register. If appointed, the managing director and general manager must be entered in section B of the register; Must be a member of the Guarantee Fund; Not be a public entity or an entity or company controlled by a public entity; Not hold more than **% of their capital in such a way as ...

6.1 Segmentation

There are three types of brokers:

Courtiergrossiste the broker who takes care of obtaining the best products from insurance companies, tries to negotiate conditions and sells them on to another broker Courtierclassique is the broker who selects and finds the most appropriate insurance solutions for the customer, trying to obtain the best possible conditions for the customer. He acts as a consultant in the insurance sector InsurTech/online broker InsurTech brokers are new brokers developing new insurance models using technological innovations such as AI and blockchain. Online brokers are players who operate primarily online

• B.S.A. Srl
• Facile.it
• Yolo
• Assiteca
• AEC Master Broker
• Marsh
• Mansutti
• Reale Mutua Assicurazioni
• Allianz Italy
• UnipolSai Assicurazioni