So far only AXA and ARAG have stated that they will apply Royal Decree-Law 3/22 of 1 March. The companies refusing to apply it, by contrast, account for more than 75 % of the market share.
The National Roadside Assistance Alliance is about to exhaust the second round of dialogue with insurers, motoring clubs and travel assistance platforms. The sector's most urgent demands involve bringing roadside assistance contracts into line with current law, namely Royal Decree-Law 3/22 of 1 March, passed by the Government, which called for costs arising from the increase in fuel prices to be passed on; and covering the expenses involved in maintaining an essential 24/365 service which, for the time being, does not receive sufficient recognition from these companies.
At the beginning of the month the Alliance denounced that Allianz was flagrantly breaching these regulations, but today there are more companies that have still not made a move: Mapfre, Mutua Madrileña, Asitur and the Real Automóvil Club de España (RACE). All of them continue to express doubts about the scope of application of the decree-law, in force since March; they have said as much in meetings with members of the Alliance, which represents tow-truck companies.
Xavier Martí, the Alliance's spokesperson, appeals to the responsibility of these companies, which hold a market share of more than 75 % of assistance and travel assistance. As they are evading this legal obligation, the Alliance is forced to turn to higher authorities, such as the Directorate-General for Insurance of the Ministry of Economy and the National Markets and Competition Commission (CNMC), to which it will report what is happening in the coming weeks. This will establish whether this behaviour could constitute a breach.
So far, only the insurer AXA and the platform ARAG have shown willingness to comply with the regulations, in force since March, before the end of this September. There are still entities such as Europe Assistance, Línea Directa and RACC with which the situation must be addressed in the second round of negotiations.
Losses affecting 63 % of the assistance sector
It is key for the companies to start understanding the situation, given the squeeze on margins at roadside assistance tow-truck companies, which has left 63 % of the assistance sector with losses on their balance sheets. Insurers, for their part, are reported to have made profits of 2,662 million euros during the first half of 2022 (9.3 % more than the previous year).
As things stand, the Alliance foresees imminent company closures and insolvency proceedings if fuel costs are not recovered immediately, with rates being revised across the board to bring them into line with the current economic situation; many of these rates have been frozen for a decade. Providing the service on a regular basis, with due regard to road safety in Spain, is complicated. This summer, in fact, more than 120,000 jobs could not be carried out with the efficiency and speed that these road incidents require.
Tomorrow, 22 September, as part of the 4th edition of FIRECA, the International Rescue, Assistance and Emergencies Fair, the Alliance and its member organisations have called a sector assembly under the slogan "ON THE 22ND THE TOW TRUCKS DECIDE". Decisions will be taken there for this autumn, which could include the total or partial suspension of assistance and travel assistance services in Spain.
The National Roadside Assistance Alliance is made up of the following regional and national associations and business organisations: ABEAC (Balearic Islands), ABEAC (Basque Country), ASCA (Catalonia), AMEAC (Madrid), ANESAV (National), ASCALEAC, (Castile and León), ASEDA (Andalusia), ASEGA (Galicia), AGRUAXA (Salamanca), ASEXTEAC (Extremadura), GRUPO CARTER (National), CEPAS (National), FEGRUAL (National Federation) AGREGA-GRÚAS and REAC (National Group).