WRITTEN QUESTION E-3008/98

by Ernesto Caccavale (UPE) to the Commission

(8 October 1998)

Subject: Discriminatory rise in insurance rates for Italian moped owners

In Italy, the third party insurance rates for mopeds recently rose by up to 300 % with respect to last year's rates. The Italian Association of Insurance Companies, ANIA, explained this highly controversial increase by means of vague allusions to the state of the market, including the increase in the number of accidents and the cost of claims. However, in view of the fact that this increase was across the board, there is good reason to suspect that the insurance companies came to an agreement among themselves, which, if true, is likely to undermine the workings of the free market and the principle of free competition. Furthermore, according to some press reports, moped owners are not allowed to take out insurance with other European companies, thus preventing those companies from competing on an equal footing, in clear violation of Community rules on the single market.

Given the above, would the Commission:

1. ascertain whether this across-the-board increase in insurance rates is in fact due to an agreement reached between the various companies, in clear violation of the most basic principles of free competition;

2. ascertain whether non-Italian European insurance companies are being prevented from offering competing insurance products, in violation of Community rules on the single market;

3. on the basis of its findings, establish whether there has been a clear violation of consumer rights and, if necessary, take appropriate action without delay.

Answer given by Mr Monti on behalf of the Commission

(8 December 1998)

Community insurance law lays down rules on the conduct of business in relation to compulsory third-party liability insurance for motor vehicles within the single market.

A Member State may not prevent an insurance undertaking which is authorised in the undertaking's home Member State from conducting motor insurance business on its territory, whether by opening branches or under the rules on the freedom to provide services, provided that the undertaking complies with the conditions laid down in Community legislation. The insurance undertaking must conduct its business in compliance with the rules laid down, in the interest of the general good, by the Member State where the business is conducted. Nor may a Member State introduce measures designed to prohibit or prevent its citizens from taking out third-party insurance cover for motor vehicles, including mopeds, with an insurer in another Member State of the European Economic Area if the insurer complies with the requirements of Community law governing the carrying-on of insurance business and wishes to conduct its business in that Member State, either by opening local branches or under the rules on the freedom to provide services.

The Commission has not found that the public authorities have introduced any measures on the Italian market to prevent insurers from other Member States of the European Economic Area from conducting business in Italy in the field of motor vehicle insurance, and in particular moped insurance.

Lastly, the Commission would inform the Honourable Member that it will be checking whether there is any breach of Community competition rules on the Italian market for compulsory third-party liability insurance for mopeds.