ProfitabilityversConsumer protection
Presented byMariusz W. WichtowskiPresident
Managing Organisation of the International Motor Insurance Card SystemUnder the aegis of the United Nations
CONSEIL DES BUREAUXCOUNCIL OF BUREAUX
Is there any contradiction?
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUX
Conflicted bodies
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUX
• Customers
• Insurance markets
Customers
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUX
• Insured persons
• Victims
Insurance markets
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUX
• Insurers
• National Bureaux
• Guaranty Funds
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUXOrigin of MTPL
• Beginning of XX century• Soon compulsory• Protection
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUX
• Population of Europe 750 million• No of vehilcles 360 million• Number of accidents
millions/year
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUXInsurance
• Profit vers
• Protection
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUX
Profit welcomed
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUX
Risk factors
• External• Internal
• Economical crisis• Not predictable policy on the
national level• Low level of the supervision• Jurisprudence
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUXExternal risks
• Price war • High operation’s costs• High commissions• Bad organization• Lack of experience• Short term plans
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUXInternal risks
Who has influence ?
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUXInternal risks
• Uninsured driving• Fraud
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUXAccumulative
risks
• High levelover 1 billion € claims/year
• Serious problems on particular markets
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUXUninsured
driving
• Less premium• Impact on financial stability• Negative psychological impact
• Who is the final payer?
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUXUninsured
driving
• Value of the costs• Estimation: 10-15 % of claims paid
• Who is the final payer?
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUXFraud
Direct impact on the profitability
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUX
Uninsured driving and Fraud
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUX
Where is the consumer?
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
CONSEIL DES BUREAUXCOUNCIL OF BUREAUX
Where is the profit?
″We act for the protection of cross-border road traffic
victims”
166 Avenue LouiseB-1050 Brussels, Belgiumwww.cobx.org
Thank you for your kind attention
CONSEIL DES BUREAUXCOUNCIL OF BUREAUX
