Italian insurance regulatory updates Nicolo Juvara (Partner) and Leonardo Gianni (Senior associate) Norton Rose Fulbright Studio Legale 5 September 2013
Regulatory framework innovations Main areas affected by changes during last year Replacement of the insurance market regulator (IVASS) Insurance mediation: freedom of cooperation between insurance intermediaries Completion of reforms started in 2012 Further motor TPL insurance reforms New guidelines for public procurement of insurance services 2
Replacement of the insurance market regulator IVASS took over ISVAP as of 1st January 2013 IVASS de facto integrated with the Bank of Italy Alignment with Bank of Italy rules and practices New guidelines for inspection procedures (14 February 2013) New draft regulation on customer due diligence (6 June 2013) (anti-money laudering) - Consultation completed New draft regulation on procedure for issuing pecuniary fines (10 July 2013) - Consultation completed New draft regulation on disciplinary sanctions (10 July 2013) - Consultation completed New draft regulation on procedure for issuing new regulations (so-called AIR Analisi Impatto Regolamentare) (17 July 2013) - Still in consultation New draft regulation on bankruptcy procedure for insurers (Liquidazione Coatta Amministrativa) (2 September 2013) - Still in consultation 3
Cooperation between insurance intermediaries Previous restrictions by ISVAP lifted (D.L. 179/2012) Liberalisation of the insurance distribution, initiated with the Bersani Decrees for non-life insurance sector, completed Italian and EU passported intermediaries are now free to cooperate Duty to disclosure cooperation to customers Joint and several liability vis-à-vis customers Free cooperation to prevail over exclusivity agreement (for life insurance sector too) Italian intermediaries remain divided into categories with different business models 4
Regulatory framework innovations Completion of reforms started in 2012 Home insurance systems by requiring insurers (except for EU insurers) to create a restricted area accessible by all policyholders on their website Further motor TPL insurance reforms Fraud Prohibition of tacit renewal clauses in TPL policies Basic contract Black boxes 5
Guidelines on contracting insurance services to public/governmental bodies (March 2013) AVCP (supervisory authority for public procurement) issued new guidelines covering procurement by public bodies of Insurance, and Insurance mediation services Addressed areas Ad hoc reporting obligations on insurers Redicing withdrawal rights of insurers Extension of policies when public bodies cannot find alternative coverage Avoid contracting insurance and insurance mediation services altogether Broker compensation (fee vs. commission) Eligibility criteria Tacit renewal of TPL policies of public bodies (still allowed) 6
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