On October 30 2013 IVASS (the Italian insurance regulator) launched a survey on the sale of insurance policies (typically in the form of group policies) in conjunction with non-insurance products or services. The survey period concluded on December 31 2013.

Scope of survey

While acknowledging that the sale of insurance policies in conjunction with non-insurance products or services is as widespread in Italy as abroad, and that such sales can contribute to the development of the insurance market, IVASS intends to verify whether consumers are provided with at least the minimum level of protection in terms of:

  • informed decision making on the purchase of policies (with the exclusion of 'silent-assent' mechanisms);
  • having actual knowledge of the warranties provided by the policy so that they can be duly activated in case of a claim; and
  • transparency on costs.

Affected insurance products

IVASS identified several products that are affected by the survey:

  • in the public utility companies sector, insurance policies offered in conjunction with the supply of energy, water and gas which cover:
    • costs of assistance given in case of defects in domestic equipment and damage to property; and
    • increased costs due to water system leaks;
  • in the air, maritime and railway transportation sectors, insurance policies offered in conjunction with transport services which cover (among other things)risks connected to the payment of contractual penalties due to changes to or cancellation of the relevant ticket; and
  • in the consumer goods sector, insurance policies offered in conjunction with the sale of goods which cover the risk of damages to or malfunctions of the goods.

Information requested by IVASS

Information requested by IVASS in the survey included:

  • the existence of partnership agreements with providers of goods and services and the relevant turnover; and
  • details regarding the premium, related payment methods and termination provisions provided by the policies concerned.

Such information was to be provided with a report including descriptions of:

  • the kinds of contract in existence between the undertakings and their commercial partners; and
  • the pre-contractual information rendered to the client and the information provided for the purpose of subscription of the insurance contract.

Undertakings involved in survey

The following undertakings were involved in the survey:

  • undertakings with a head office in Italy;
  • undertakings with a head office in a third state performing business in Italy under the freedom of establishment regulations;
  • EU/European Economic Area (EEA) undertakings performing business in Italy under the freedom of establishment regulations; and
  • a sample of 30 EU/EEA undertakings (identified by IVASS) performing business in Italy under the freedom of services regulations.

Timeframe

The above information had to be transmitted to IVASS by December 31 2013. The requested information concerns insurance policies in existence as of October 30 2013 or those that the undertakings intend to market by June 30 2014.