What is the future of insurance after the case Eurovita? (read the related news here). They talked about it Adolfo UrsoMinister of Business and Made in Italy, Carlo Cimbripresident of Unipol and UnipolSai, Maria Bianca Farina, ANIA president, Philippe Donnet, managing director and group ceo Generali, e Roberto Novelli, head of the bureau and of the IVASS council, during of the 2023 Insurance Summit of Il Sole 24 Ore, organized by 24 Ore Eventiby title “The future of insurance between new financial scenarios and management of major risks”.
Novelli makes a sort of appeal to savers who have subscribed to Eurovita policies: “At the moment the data does not show avalanche redemptions, but we invite savers to make choices with their heads and not with their gut, caution is needed. We must take into account two things to evaluate the first data: there is a physiological component, someone who had postponed expenses with the blocking of redemptions, but also that caution is needed, given that there are no problems related to the specific situation: Cronos Vita it is owned by the main Italian companies and in a few months it will be unpacked and customers will end up in the portfolio of these same companies”.
“Furthermore – concludes the Ivass president – redeeming now can lead to smaller amounts than expected given that the blocking of redemptions was a measure adopted for the first time, strong and unpopular, but on balance the set of measures taken contributed to find a solution to the Eurovita crisis”.
Urso explains that “in the Eurovita case, the government also had to act on the level of moral suasion to reach a systemic solution” but “in the end I would say in the Cesarini area the insurance system responded” and “the operation was successful. Together with Minister Giorgetti and the Italian insurance system, we managed to provide a solution that guaranteed all insured people and the system appeared solid.”
Cimbri, to those who asked him about the upcoming assessments of the rating agencies on Italy, noted that “Italy must improve its debt exposure and only in this way can it improve its rating. The path is that of growth, we must greatly increase our ability to produce income and GDP” and this, together “with discipline in managing accounts, will be the only path that will allow us to return to a more manageable debt condition” . On the reduction of public debt, he reiterates, “there is no other path, it is necessary to look for shortcuts”. Even the “incentives in a rainstorm or 110% extended over time are a drug to the system and in the long term – he warns – drugs are bad for you. Let’s not be dazzled.”
Farina recalls that “in the insurance world, Life net inflows in the first nine months of 2023 were negative by 15 billion, something that hasn’t happened for a very long time” while “there was a strong surge in the redemption rate between March and May, which determined this phenomenon”. The trend, however, has shown signs of recovery over the months: “Fortunately – he adds – since June the surrender rate has started to show a slowdown, more marked for guaranteed policies. And alongside this slowdown in redemptions, there was a recovery in the new production of traditional policies: in the first nine months of the year, new production fell globally by 3.7% compared to 2022 but with a very different” between the different branches. Summing up, also in light of the rise in rates, at the end of September the balance of net capital gains amounted to -47 billion, of which 13 billion in the non-durable segment, “a value similar to that of December 2022”.
“We are an interlocutor. You can’t just remember the insurance industry when you need the insurance industry. I am available for permanent dialogue in a spirit of public-private partnership.” He says so Donnet, via video link to the Insurance Summit 2023 of Sole 24 Ore Eventi, answering a question on Minister Urso’s appeal to continue and, if possible, increase insurance companies’ support for Italian public debt. The reform on policies for natural disasters “is certainly going in the right direction. When I joined Generali ten years ago I began to bring this idea of building a public-private partnership to address the issue of natural disasters, so I am happy that finally let’s start going down this path.”
According to the CEO of Generali “the process of consultation with the sector is not over. It is important to continue this process, to arrive at a system that is sustainable for everyone, first and foremost for the insured, be they businesses or private citizens. And we need to build a sustainable system from the point of from a financial point of view, because the capacity of the insurance system is not sufficient to cover all the risk, a commitment from the Italian State is also needed. We are on the right path, but things are not yet finalized.”
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2023-11-10 09:28:03
#Eurovita #Ivass #gut #choices #redemptions
