The Malta Insurance Association MIA) has categorically refuted any suggestions of collusion in the industry with regards to recent increase on fees for ‘Y’ plated taxis.
Yesterday, industry experts and sources spoke to Lovin Malta to explain how an unregulated taxi-sharing platform resulted in an increase in their insurance premiums for chauffeur-driven cars. In some cases, the fee tripled from €800 to €2500.
However, the MIA denied any sort of coming together of insurance companies to implement the increase.
“This is wholly incorrect, misleading and attributes false statements to the manner how insurance companies carry out their commercial activity in full compliance with existing laws, especially those with regard to competition for the customer’s benefit.”
“It is a dynamic, competitive market where each insurer does its best to attract the custom of the general public rather than colluding with other insurers to keep business away from their doorstep which is the impression given by the said article.”
“The Association does not get involved in the pricing of insurance risks; this is a matter handled internally by each company. Nor do insurers use their association to discuss matters of pricing, doing so would be in breach of the Competition Act,” the MIA said.
On the issue itself, the MIA did explain that insurance premiums are the price paid for risk, which is why they are revised when risks change.
Risks, they explained, manifested through an increase in claims and reflected claims experience.
“Insurers face a choice between two options – either spread the increased cost with everyone – even those who are completely unrelated with the segment itself or else focus on the segment itself,” the MIA said.
In the previous article, industry sources claimed that growing risks and exposure increased some premiums, following years of weak enforcement by authorities.