Insurance update (Italy)

On August 4, 2020, following the public consultation on the completion of the implementation of Directive 2016/97 (the IDD), which began in 2019, IVASS released: (i) Regulation 45/2020, regarding product oversight governance (POG), until now governed only by the EU Delegated Regulation 2017/2358, and (ii) Order 97/2020, regarding changes and additions to ISVAP Regulations 23/2008, 24/2008 and IVASS Regulations 38/2018, 40/2018 and No. 41/2018.

Main aspects of the new legislation include:

• A global revision of Regulation 40/2018 regarding insurance distribution, including:
  • Changes in the provision demands and needs assessment process (for both IBIPs and non IBIPs);
  • Changes to Annexes containing information about the distributor/intermediary, which are replaced with a new standardized set of templates; and
  • A new section dedicated to conduct and transparency obligations related to the distribution of insurance investment products (socalled IBIPs). Please note that parallel legislation (available at this link) has been issued by Consob, addressed to intermediaries enrolled in section D of the Intermediaries Register held by IVASS (dedicated to banks and financial intermediaries) and their collaborators.
• Changes to Regulation 41/2018 regarding information, advertising and design of insurance products;
• Other changes relating to:
  • Regulation 23/2008 on the transparency of the premium relating to Road TPL insurance and vessels TPL insurance,
  • Regulation 28/2008 on the procedures for the presentation and management of complaints, and
  • Regulation 38/2018 on the corporate governance system. The new legislation, including regarding POG governance, will enter into force on March 31, 2021.

The new legislation, including regarding POG governance, will enter into force on March 31, 2021.

Our Corporate and regulatory insurance team in Italy has been actively engaged in the public consultation on the completion of the implementation of the IDD, including having submitted comments and remarks to the relevant national authorities. We are planning to organize a webinar in early September to discuss our experience in the public consultation, review the provisions of the new legislation, and present our considerations regarding the potential consequences to our clients in the insurance sector. More information regarding the webinar will be delivered later this month.