XPRIMM: Which are, in your opinion, the most sensitive issues regarding the Green Card System and the current state of motor insurance throughout Europe? Which would be the possible solutions?
Mariusz WICHTOWSKI: I'm sure that the current problems regarding motor insurance in Europe are related to the financial aspects. From the consumer's perspective, the financial results of the insurers are certainly not important, but on the other hand these are not to be taken lightly, because some of these issues also influence the activity of the Green Card System. In order to protect the rights of the victims, the Council of Bureaux is very much interested to maintain the financial stability of its partners.

Unfortunately not all insurance markets have the same level of solvability and the reasons behind that may vary. Some of them have a profoundly negative influence on the functioning of the insurance business, as well as well as on the insured. The phenomena of driving without insurance and insurance fraud increase the financial difficulties for the markets and have an amplifying effect on the value of the insurance premium. In other words, the honest customers are forced to pay increased premiums, while other drivers abuse the system.

On the other hand, tolerating such a situation may generate problems regarding solvability and, of course, the inability to generate profit. Within the Green Card System there are markets with very low rates of uninsured drivers, for example 0.01% in Germany and Austria, while in Bulgaria and Albania, this indicator reaches 20%. Therefore, one of our most important tasks is to report these situations and to coordinate and implement the right action plans to address these issues.

There is also a need for a very close cooperation on a national level between the Police, supervisory authorities, ministries, as well as on an international level (the European Commission, Insurance Europe, IReg).

XPRIMM: Which was the trend regarding Green Card claims over the past few years? What are your expectations for the near future?
M. W.: The Council of Bureaux governs two systems: Green Card System and the Protection of Visitor System. These two complementary systems are responsible for more or less similar types of claims although they are regulated according to different rules. We can observe a substantial and continuous increase in the numbers of claims and, on the other hand, the substantial improvement of the victims' awareness regarding their own rights.

XPRIMM: Are bodily injury claims on the rise throughout Europe? What can the insurers do to better protect themselves against large claims?
M. W.: Indeed, one of the most important problems the industry is facing is the compensations for bodily injury claims. Over the last years we have observed that in different markets there was a very acute rise of indemnities and an increase in the numbers of specialized lawyers and claims agencies that became more and more involved in this matter. In many cases, the markets are solely responsible for this situation due to rather questionable service of the claimants. Unfortunately, at this moment we are facing an "Americanization" of the systems and I think there is no way to stop it.

There still is, however, the possibility to minimize the consequences of this situation. In the first place, there is a need to train the staff and introduce specific rules governing the system of handling the bodily injury claims. Generally speaking, the insurers should be a bit more empathic and proactive in this area. Another possibility is to promote the basic knowledge about the rights and obligations of the parties involved in the accident as well as to raise general awareness, including the one of the justice system, because the uncontrolled surge of the compensation amounts also has a negative influence on the level of the insurance premium, which as a consequence, will sharply increase.

XPRIMM: Is financial discipline a necessity for insurers who operate on the motor insurance segment (especially MTPL)? What is the current situation regarding this issue?
M. W.: Unfortunately, for different reasons, the financial discipline is not always the priority of the insurers. In all countries there are the provisions regarding the rules and timing of the payment of the compensations, and such rules exist in the Green Card System too. In my opinion, supervision is not always sufficient in this area. Nobody likes to be controlled, but we should remember that the insurance business has a specific character related directly to the stability of the system.

Competing by price dumping and not by the quality of the services provided by the insurer, translates into losing a long term opportunity to make a profit. Nevertheless, very often and on different markets we can observe that it is more important for insurers to have a top position in the market based on premium income instead of the technical profit. In reality, this is what leads to the financial difficulties mentioned above. Lack of profit, lower premiums, higher costs, these all are factors that generate problems and raise the need for us to take action and sanction the market.

XPRIMM: What can the CoB do against insurers who do not fulfill their obligations?
M. W.: Of course there are measures we can take and they are clearly described in the Constitution of our organization. The first step is to introduce the obligatory monitoring of the Bureau/market. This sanction is connected with specific financial guaranties which are quite expensive for the monitored Bureau, but necessary for the financial stability of the System. The following measures are financial penalties, suspension and even termination of the membership in the Council of Bureaux. Of course, before taking any sanction against a Bureau, we try to find a suitable solution on an amicable basis.

XPRIMM: Which are the CoB's main objectives in the near future?
M. W.: The Green Card System has been operating since 1949. It means this year we will celebrate our 65th anniversary. This is, without a doubt, the largest professional insurance organization within the European and Mediterranean area, bringing together, at this moment, 46 national bureaus.

It is extremely important to underline that throughout all these years we have been aiming for the same objectives. Our role as the unique facilitator of the cross boarder road traffic and guarantor of the victim's rights will be continued in the future as well. It doesn't mean that in the past we didn't modify the System. Of course, more than once there was the need to adapt the governing rules to the current situation. The economic and social changes as well as the legislative activity within the European Union have influenced the practical aspects of consumer protection. For several years, the Council of Bureaux coordinates the activity of the two systems. Their full integration will be one of the most important tasks in the nearest future, as well as the fight against uninsured driving.