Keywords: Insurance; MTPL; Regulation; Body Injuries; Prices.
This paper analyses the reasons of the differences in the prices of the Italian Motor Third Party Liability (MTPL) insurance with other European countries. It identifies the main reason of the high price level in the evolution of the criteria used by the Judicial system in Italy to quantify the level of compensation due to claimant in case of body injuries. The Italian Courts have not properly taken into account neither the foreign practice nor the direct relationship existing between the level of the compensations and the level of prices. The Judicial system has substituted the political system in defining the level of compensation and by this the amount of resources that the country can devote to MTPL insurance. The paper also describes other reasons for the high level of prices in Italy, focusing mainly on the legislation that is not particularly suited for contrasting insurance frauds. In the final part, the author proposes a set of actions that could reduce the level of MTPL prices in Italy, narrowing the gap with other European countries.