The risk certificate (ATR) is a fundamental document in the context of car insurance that certifies the insurance history of a driver, providing detailed information on the number of claims (accidents) caused in recent years and the so-called “merit class”. The risk certificate is necessary when taking out a new insurance on a vehicle. Initially it was in paper format, then it became digital from 2015 and starting from 1 June 2018 is “dynamic”.
To calculate the cost estimate, the insurer needs some specific data, such as information about the driver (age, and others) and the car (engine capacity, year of registration, etc.) necessary to define the price of the premium to be paid. But in addition to this information, the insurance also needs another important document: the risk certificate which is also called “dynamic risk certificate”, a new form desired by theIVASS (Institute for Insurance Supervision) to reduce insurance fraud. But let’s go step by step! Let’s try to understand what is the risk certificate and finally the advantages of the dynamic one.
What is a risk certificate?
What is a risk certificate? In short, it is a document that reports the number of claims reported in the last 5 insurance years by those who have taken out a motor vehicle and motorcycle civil liability insurance policy (RCA). It is a fundamental document for calculating the insurance premium, whether the insured remains with the same insurance company or decides to change it.
Just to be clear, the risk certificate is no longer issued by the old insurance company in paper format but only in the electronic form of a digital risk certificate. Let’s find out together what is meant by risk certificate, in general, and in particular what the digital risk certificate is for and how it works.
Dynamic Risk Certificate
The traditional risk certificate was static: was updated only once a year, upon expiration of the policy. It contained data relating to claims that had occurred in the previous 5 years, but did not reflect any incidents that had occurred after the policy was issued.
THE’dynamic risk certificateInstead, It is continuously updated, reflecting the driver’s insurance situation in real time. This means that if an accident occurs during the year, it will be immediately reported in the document, without having to wait for the annual expiration of the policy to update the data.
Characteristics of the Dynamic Risk Certificate
- Continuous update: Claims data is updated every time an accident occurs and is recorded by the insurance company.
- Greater transparency: Driving information is always up-to-date, which allows companies to calculate insurance premiums more accurately.
- Integration of micro-lesions: in addition to traditional claims, the dynamic risk certificate also includes claims with only minor physical damage (so-called micro-lesions) which were previously not always reported.
Advantages
This dynamic system is beneficial both for the insured, who can benefit from greater transparency, and for the insurance companies, who can better manage the risk. For example, if a driver has an accident after the risk certificate has been issued, this accident will be immediately recorded and taken into account in the calculation of the subsequent premium.
In summary, the dynamic risk certificate represents a significant evolution compared to the past, offering a more precise and updated picture of the risk associated with each insured person.
Now we have come to the point of seeing what therisk certificate dynamic:
- name of last insurance;
- personal data of the contractor;
- number of the last insurance contract;
- expiration date of the insurance policy;
- rate applied by the subscribed insurance and deductibles;
- identification data relating to the insured vehicle (for example, the license plate number);
- class of merit universal insured
What is the merit class?
There class of merit it’s an identification number, from 0 to 18reported on the risk certificate which indicates the insured’s history and his accident history. The merit class is important because it determines the premium of the insurance policy and changes from year to year (decreasing if no accidents are committed accidents which increase the merit class).
How to get it?
In fact, it is no longer necessary to provide a copy of therisk certificate when you change insurance for which it is no longer necessary to obtain it. In fact, in the case of switching from one insurance company to another on the same or another vehicle, the new insurance company will directly acquire the certificate from the old company electronically.
Insurance companies will therefore no longer send the policy holder the certificate of risk before the annual deadline as has happened in the past.
From a practical point of view, therefore, the certificate is available to the contractors on the respective internet portals of the insurance companies, and the insured can access it from the reserved area to download it or send it by email.
Dynamic Risk Certificate, how it works
Let’s try to better understand how the dynamic risk certificate works and the benefits compared to the paper and digital ones.
• DURATION – The transition to the dynamic risk certificate allows for a more precise assessment of the insured’s accident history. In fact, the previous accident history table will be extended to include an indication of the accidents in the last 10 years, rather than the last 5.
• TIMELINESS – The risk certificate will also take into account claims paid close to or after the expiry of the contract, even if the insured has changed company (so-called late claims).
• ANTI-FRAUD – With the dynamic risk certificate, evasive or fraudulent behaviors will be eliminated, to the benefit of honest and virtuous insured persons.
If you’ve gotten this far, you’ll have certainly understood that you no longer have to worry about the risk certificate when you change insurance company!
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