Almost 500 roadside assistance tow-truck business owners are demanding a rate increase of more than 40 % to avoid bringing their activity to a halt, with 63 % of their companies making losses.
Last Thursday 22 September, as part of the 4th edition of FIRECA, the sector assembly took place under the slogan "ON THE 22ND THE TOW TRUCKS DECIDE", called by the National Roadside Assistance Alliance. The idea was to set out a roadmap for the survival of the sector, given the difficult situation it has been in for some time. Despite continuing to provide services to insurers, motoring clubs and travel assistance platforms, losses now affect 63 % of the tow-truck sector.
Roadside assistance companies charge for their services at rates more than 40 % below the price needed to avoid technical insolvency. That is why the Alliance has approved a roadmap that includes protests in the first days of October, running until 2023. Stoppages are not ruled out if there is no significant progress in the situation.
The Alliance's spokesperson, Xavier Martí, has once again highlighted the sector's critical situation. "We are facing a devastated assistance market in which rates frozen for more than a decade are putting many companies on notice of closure." "The irresponsibility of insurers and intermediaries, who are breaking current law, is going to cause situations that harm road safety due to a lack of services all over Spain," he pointed out.
Rounds of dialogue exhausted, with barely any results
Tow-truck business owners have exhausted two rounds of dialogue with insurers, motoring clubs and travel assistance platforms. In them, these companies rejected practically every minimum proposal, which included compliance with the regulations passed by the Government last March on passing on costs arising from fuel price increases.
The government decree-law addressed the tow-truck sector's need to cover the costs and expenses involved in maintaining a 24h/365-day service. It is worth remembering that insurers – which hold a market share of more than 75 % – have announced profits of 2,662 million euros in the first half of 2022 (9.3 % more than the previous year).
In the coming weeks, the Alliance will report this regulatory non-compliance both to the Directorate-General for Insurance of the Ministry of Economy and to the National Markets and Competition Commission (CNMC). The aim is to find out whether this behaviour could constitute a breach of competition law.
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).