Decreased motor sales also affects the connected services
 The effects of the crisis on the motor industry and on the connected services are becoming more and more visible, so the motor insurance segment may have even more to suffer from the large volume of paid claims, under the circumstances of a decrease of the new-business.
An EUROTAXGlass's independent study highlighted the effects of declining vehicle sales upon the leasing and motor repairs sectors. Thus, the results of the study showed that sales of new cars fell by 69.7% in the first quarter of 2010, and used vehicles registrations fell by 42% compared to the same period of last year. Also, in the last 12 months there was an approximately 5% reduction in the number of motor dealers and an 8% one in the number of repair units.
Moreover, the leasing companies' business has dropped by 81% in Q1, and the rate of repossessions of vehicles reached an average of 22% in the financed portfolio, thus also lowering the volume of correspondent insurance.
In the insurance industry, "in order to be able to cope more easily with the current period, our recommendations, as an independent consultant and evaluator for both the motor market and for the connected ones, are to continue the tendency of standardization of processes through databases and IT applications used, and to establish a better communication between insurers, related to clients with an unfavorable claims history", said Sorin IACOB, General Manager, EUROTAXGlass's Romania.
More on the problems currently faced by the motor insurance market and on the correspondent solutions will be discussed with the occasion of "Motor Insurance Day", in FIAR - International Insurance-Reinsurance Forum 2010. The company EUROTAXGLASS`s is Main Partner of this event.
We remind you that this is the last week when you can still book a place at this conference for only EUR 50 + VAT. For details and registration, click here!
Author: Mihai CRACEA
on 26.04.2010
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