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26 June 2018
Decree-Law 68 of 21 May 2018, which transposes the new EU Insurance Distribution Directive (2016/97/EC)(1) into the Italian legal system, was finally published on the Official Gazette on 16 June 2018. The Italian regulator has also published(2) separate consultation papers(3) on its website regarding implementing measures on:
A third consultation paper(4) published at the same time deals with the new procedural rules for the application of fines in case of breach of insurance regulations.
The rules contained in the EU Delegated Acts 217/2358 and 2017/2359 regarding product oversight governance and insurance-based investment products will be addressed separately by IVASS at a later stage. The consultation phase will close on 9 July 2018 and comments on the proposed regulations will be sent to IVASS.
The consultation phase on the consultation papers will close on 9 July 2018 and comments on the proposed regulations shall be sent to IVASS by then.
The new rules and regulations will largely replace and rationalise a number of existing provisions and will apply to domestic and EU (re)insurers and intermediaries performing business in the Italian territory.
Decree-Law 68 and the draft regulations will require in-depth analysis before making conclusive comments on their potential impact, which appears will be significant.
Registration of distributors and IVASS supervisory authority
The scope of application of IVASS's supervisory authority will undoubtedly be widened to include:
A new Section F of the Register of Insurance Intermediaries will be added to existing sections, where those who offer insurance products in combination with other services or products are listed. As per Article 114 of the Consolidated Banking Act, in addition to banks, payment institutions can now apply for registration under Section D of the register.
Limits to the mandatory errors and omissions policy will be revised.
All distributors are invited to use electronic means and digital signatures for the completion of insurance contracts and any commission paid to distributors must now be disclosed.
The formation of the insurance contract will be preceded by:
Specific rules for comparative sites are now provided for and the new set of rules will be effective as of 23 February 2019.
The draft regulation regarding pre-contract information reflects the provision set out by:
The new pre-contract information set will include the following standardised documents:
Each of the above will be accompanied by an additional DIP, which will detail additional information on the product to ensure effective understanding and a reasoned decision by the proposers.
Insurers are invited to use electronic means for the management of contracts and the exchange of information with insureds.
EU insurers conducting business in Italy under the freedom of services regime or freedom of establishment, should now be affected by the rules regarding websites and home insurance. New products will be made available on insurers' websites.
The new rules should be effective on 1 January or 1 May 2019 (depending on the relevant provisions).
For further information on this topic please contact David Maria Marino at DLA Piper Italy by telephone (+39 02 80 61 81) or email (firstname.lastname@example.org). The DLA Piper Italy website can be accessed at www.dlapiper.com.
The materials contained on this website are for general information purposes only and are subject to the disclaimer.
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