1 Source ANIA – L’assicurazione italiana nel , page , with some companies as anticipated by the related CCNL (National. CCNL: the National Collective Labour Contracts stipulated by ANIA and the trade union associations most . /, by Law 69/ and by. Symbol, CCNL1, contributors: mct/pgu – updated: cyclin L ania-6a. cyclin L gamma. Synonym symbol(s), BM, CCNL, PRO, ania-6a.
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Italy has the world’s eighth-largest economy, made up of small and medium-sized companies producing high-technology and high-quality products. The economy is rapidly recovering from the financial crisis, even if the political election poses a risk of political instability at both national local and regional level, creating a further challenge for all industries, and for the financial one in particular, to overcome.
According to the European Commission’s winter forecast, the economy is set to grow by around 1 per cent in both andsupported by low real interest rates and stronger external demand, though structural weaknesses hinder a stronger recovery.
Those positive projections have been confirmed by the latest assessments released by the Italian National Statistical Institute 2 for the fourth quarter of the past year, which indicated that, inItalian GDP increased by a 1. The insurance market should benefit from both the national increase in the number of cyberattacks and the European General Data Protection Regulation GDPR implementation in May that will introduce a stringent requirement to prevent and then notify data breaches, imposing large fines for unprevented data breaches.
However, it is doubtful whether these fines could be legitimately insured in Italy. In contrast with the non-life insurance market, Italian life insurers still suffer from a lower operating profitability in owing to the prolonged low interest rates that continue to pose major challenges to insurance companies, combined with stock-market volatility.
This trend will continue throughout because interest rates are at their lowest point in decades. It is evident that, despite the difficulties in relaunching the internal economy, Italy remains a fertile ground for insurance underwriters, and provides interesting opportunities for prudent insurers and reinsurers especially in the newly developing cyber and data protection insurance markets. On 1 JanuaryIVASS took over all functions previously carried out by ISVAP, including the supervision of intermediaries and the distribution of insurance products for better coordination between the control and regulation of the financial promoters.
The register of insurance experts and the Italian Information Centre 5 have been taken away from the insurance regulator’s competence and passed on to the Concessionaire for Public Insurance Services.
The President promotes and coordinates the activities of the Council, which is responsible for the overall administration of the institute. The Directorate is competent to direct public body activities and adopt strategic decisions. IVASS should establish more focused supervisory controls upon life and non-life insurance companies to bring down insurance costs and, consequently, premiums.
Having implemented a new regulation concerning its organisational structure, IVASS became quite active. InIVASS issued the very first set of rules for the management of insurance services offered online. These norms implemented the provisions introduced by Article 22, Paragraph 8 of Development Decree No. This regulation lays down rules and minimal requirements to promote more effective management of insurance e-commerce or services offered electronically through insurance portals or the website of insurance and reinsurance companies.
Then, IVASS provided for imposed administrative fines and the application of disciplinary sanctions in respect of insurance and reinsurance intermediaries and the rules of functioning for the Guarantee Committee supervising the sanction proceedings. In respect of insurers, this regulation established the prohibition of requiring documentation that is already in their possession having been obtained on the conclusion of a previous contract.
This ban does not apply if the documentation in question is no longer valid. IVASS then regulated the receivership of insurance companies. InIVASS intervened to regulate the obligations of adequate due diligence and anti-money laundering registrations on the part of insurance companies and insurance intermediaries, 10 as well as intervening on occupational requirements of insurance and reinsurance intermediaries respectively, with the goal of promoting insurance intermediaries’ professional requirements, particularly taking into account the increasing spread of insurance relations to be handled electronically and concerning the internal identification of the organisational units responsible for administrative proceedings.
During its first years of existence, IVASS pursued the goal of bettering the transparency and clarity of information, and negotiating simplicity for the insured, while at the same time securing effective sanctions in the case of insurance companies’ non-compliance with the new market rules.
Afterthe date on which Solvency II came into effect, IVASS concentrated its regulatory activity more on the insurers’ profitability and capitalisation, followed by a letter to the market on 10 August better illustrating how to determine the capital requirement using the standard formula, as well as the look-through approach dictated by Regulation No. This trend continued throughoutwith Regulation No. In Italy, only admitted insurers are entitled to provide insurance.
Associazione Nazionale fra le Imprese Assicuratrici (ANIA) | LobbyFacts Database
More precisely, under the Italian legislation, the admitted insurers should meet the existing requirements for authorisation, and have the minimal share capital or guarantee fund fully paid up in cash. In general, only public companies, cooperatives and mutual insurance companies or equivalent foreign companies can apply to IVASS for an authorisation. Lloyd’s syndicates are the sole exception, and they have been specially authorised because of their particular historical status and in accordance with the fundamental freedoms of the Treaty on the Functioning of the Ccjl Union.
New insurance and reinsurance companies that wish to undertake or start a new business in Italy can do so only after being authorised or licensed by IVASS through an order if the undertaking has its ccml office in Italyor by an 212 of the formal communication made by the company along with confirmation of the supervisory authority of the state where the company has its registered office. The order or the acknowledgement of the formal communication must be published in the Official Gazette, and the newly authorised or licensed insurance company may start underwriting insurance or reinsurance only after such publication.
The most important are:. If the application is incomplete or IVASS’s requests ccnnl further information are not met, authorisation is usually denied. It is also refused if no proof is given that the share capital or guarantee fund has been fully paid up, or that the organisation fund is actually and immediately available to the company.
Equally, the authorisation or licence is denied if any of persons charged with the administration, management and internal control functions do not meet the prescribed requirements, 13 or if the scheme of operations does not satisfy the financial needs and the technical rules for the correct management of an insurance business.
A major role in the authorisation process is played by the laws, regulations and administrative provisions of any state to which the company or one or more of its shareholders is subject, and any difficulties in meeting such requirements may delay the application or even entail a final refusal.
An IVASS order refusing the authorisation is notified to the company by means of a registered letter with advice of receipt within six months from the date of the complete application with all documents required by law or with the additional documents and information requested by the authority. If six months elapse with no response received by the applicant company, then the authorisation shall be considered refused.
In Italy, in accordance with the Private Insurance Code, an insurance company’s minimum share capital or guarantee fund, fully paid-up in cash, must be not less than:. Solvency II is based on three pillars:. Mergers and transfers of insurance portfolios that involve insurance companies operating in Italy are subject to IVASS’s prior agreement, but if the merger may result in the company having a position of market dominance, the Italian Antitrust Authority might also have to give its preliminary authorisation.
The sole financial requirement is that the incorporating company or the new company resulting from the merger has the necessary solvency margin, taking into account the merger and the consolidated liabilities.
In the case of a merger, the entire operation, the relevant arrangements, and the new memorandum and articles of incorporation must be presented to and reviewed by the insurance regulator, which can make observations to ensure conformity with the law and to guarantee the insured.
There are no restrictions regarding investments in or the acquisition of an insurance or reinsurance company, provided that the funding of the operation does not breach any anti-money laundering provision or public policy.
In the event of a merger resulting in the setting up of a new company with its head office in Italy, the new company must be authorised before it can legitimately underwrite insurance, whereas if one of the parties in the merger has its head office in another EU Member State, IVASS’s agreement to the operation can only be given after the relevant home supervisory authority has approved the merger.
While reviewing the merger, and the new memorandum and articles of incorporation, IVASS performs a limited background investigation of the officers and directors of the acquirer or of the new company to ensure that they all respect the Civil Code provisions and meet the applicable legal requirements.
Should an insurance or reinsurance company enter into serious financial difficulties, Articles to of the Private Insurance Code provide for the administrative compulsory winding up of insolvent or financially troubled insurance and reinsurance companies.
The regulatory framework is complex, with its articles detailing and providing for the exclusive conduct of reinsurance activities by companies with a registered office in Italy or Italian branches of companies with registered offices abroad or both ; the procedures for authorising such activities; and companies that have a registered office in Italy and authorisation exclusively to conduct reinsurance activities to carry on such activities in other EU Member States under the applicable regulations on freedom of establishment and freedom to provide services.
In Italy, only licensed or accredited reinsurers can provide reinsurance.
Therefore, there is no need for collateral to allow a deduction from the liabilities stated on the reinsured company’s statutory financial statement. All the same, collateral might become necessary with a retrocessionaire of the reinsurer that is neither licensed nor accredited. In this xnia, the retrocessionaire must provide some form of collateral to allow a deduction from the liabilities stated on the Italian reinsured company’s statutory financial statement.
The distribution of insurance products in Italy is usually done through intermediaries, but in rare and limited cases insurance can be acquired directly from the insurer at the registered office agency.
During the distribution, a number of rules to protect consumers and unsophisticated customers must be respected. In particular, Article of the Insurance Code obliges IVASS to ensure compliance with the principles of clarity, recognition, transparency and fairness of advertising and information on the conformity of the insurance contract with the advertising and in the pre-contract negotiations with the information notice and the execution of the insurance contract policy conditions.
Along the same line, on 26 AugustCccnl and the Bank of Italy published a joint letter addressed to the insurance market including banks and financial intermediaries calling on them to adopt new measures so that customers purchasing insurance policies paired with mortgages and other loans payment protection insurance could be better informed and protected. For some life products anai as pension funds and some life policies, the index-linked products are subject to the supervision and control not only of IVASS but also of the Commission for the Supervision of Pension Funds.
Anja the principal duties of 20122 Italian regulator is the supervision of insurance intermediaries, which to operate legitimately must be listed on the Sole Register of Insurance and Reinsurance Intermediaries RUI. Based on the Private Insurance Code, the RUI is divided into five sections as follows, and no intermediary may be recorded in more than one section:. This special section contains information on natural persons and companies licensed as wnia and reinsurance intermediaries in other EU or EEA Member States who have also been ccnk by the regulator to pursue insurance mediation in Italy based on the freedom of establishment or freedom of services.
Currently, a number of special laws impose compulsory insurance to be undertaken with private insurance companies. At other times, the private insured must instead take out an insurance contract with a public insurer such as, for example, the National Institute for the Insurance of Accidents at Work, 17 or take out a mutual insurance contract with a private insurer through a public contracting entity.
Finally, an ccnl to take out an insurance contract can be found in some National Collective Contracts of Work CCNL stipulated between the trade unions, representing the employees, and the Industrial Association, representing all their members who will adopt the negotiated CCNL for the specific industry.
The most recent legislation cccnl introduced compulsory insurance is Decree-Law No. This provision provided for all professionals to take out a professional indemnity insurance contract by 13 August with the aina of physicians and lawyers.
Associazione Nazionale fra le Imprese Assicuratrici (ANIA)
The taxation of premiums and life policy revenues in Italy is a complex matter that cannot be discussed in detail in this chapter. In brief, premiums are not subject to value added tax but to an insurance tax that varies for each class of insurance in accordance with the fixed percentage set forth by Law No. Similar to any capital gain, financial yields resulting from life insurance contracts and capitalisation are subject to the substitutive tax provided for in Article 26 ter of Decree No.
The tax currently due is up to 20 per cent of the capital gain, but is reduced to In Italy, all employees are subject to a collective contract negotiated at national level between the most representative trade unions and the national association of the employers in the case of the insurance market, the National Association of Insurance Companies ANIA.
The national collective contract can then be integrated using a specific collective contract negotiated between the local trade unions and the representative of a specific insurance company or group of insurance agents. Although the national collective contract for insurance employees expired at the end of Junethe binding effects of the contract were extended while the parties were negotiating. On 22 FebruaryANIA and the trade unions reached an agreement on the new contract terms and economic conditions for management employees.
Furthermore, the national collective labour contract is integrated into all applicable labour laws.
Of particular importance are Legislative Decree No. The Jobs Act and the two Decrees came into force on 1 March In Italy, the source of insurance and reinsurance law is statutory. Case law precedents are not binding, and the very same issue could receive different treatment from one court to the next.
The rules providing for insurance contracts and their drafting are all contained in the Civil Code. The contract is not concluded until the two parties agree on the extension of the risk, and on the premium to be paid for the shifting of the risk from the insured onto the insurer.
The conclusion of the contract is a complex succession of events where the prospective insured will propose a risk, usually by completing a proposal form prepared by the insurer, who will evaluate the risk and quote the premium. In completing the proposal, the prospective insured must answer truthfully and completely to avoid being sanctioned for wilful non-disclosure according to Article of the Civil Code or negligent non-disclosure according to Article of the Civil Code.
When the risk is of an industrial or technical nature, a survey is sometimes undertaken. This provides better understanding of the risk, but might pose substantial problems should the insured have made a misrepresentation. In fact, case law indicates that any onsite visit and survey might override the false or omitted declarations in the proposal form, as the insurer or its agent the surveyor should have checked and realised the differences between the proposed risk and the real risk.
Finally, it is important to mention the IVASS circular letter to the market of 5 November concerning the long-term property insurance reintroduced by Law No. In this respect, IVASS, as a result of numerous protests received by insurers complaining about companies’ refusal to grant them an early termination of insurance contracts of multi-annual duration, invited all insurance companies, by 31 Decemberto ‘specifically and with adequate graphic evidence’, indicate in the policy whether the insured benefited from a discount because of its long duration and the fact that, owing to the discount applied, the policyholder cannot exercise the right of early withdrawal from the contract for the first five years of the contract.
While the insurance contract may be concluded orally, according to Article of the Civil Code, there must be written proof of its existence. Usually this prevents potential controversies on the object of the insurance or the scope and extension of the contract, and clearly excludes from the insurance any contractual terms that are not expressly incorporated into the policy wording. Notwithstanding this, there are some cases where the policies are badly drafted and the wording can pose problems.
Should a problem of interpretation arise, the contract shall be interpreted using the general interpretation rules that are provided in the Civil Code for all contracts, 30 which mainly relate to the will of the parties and good faith.
Furthermore, depending on whether the insurance contract has been prepared by the insurer as pro forma contracts or whether the policy wording has been duly and totally negotiated between the parties, there will be some substantial differences in the interpretation and enforcement of the contract. In the first case, whenever the insurer prepares policy wordings or forms designed to uniformly regulate a number of contractual relationships principally with non-professionals, the basic rule is to interpret contra proferentem i.
Furthermore, any added ccnnl or cancellation that modifies the original policy text shall prevail in accordance with Article of the Civil Code. In addition, there are terms that are considered legal but onerous for the party against which these are drafted.
Such clauses are not binding on a party that has not accepted them and signed twice in accordance with Article of the Civil Code. This is usually to regulate the contractual terms stipulating a specific and particularly short period to comply with the contract provision, or that modify the court jurisdiction as per the general rules of law or create foreclosure terms. Notwithstanding a listing of clauses, this procedure also has to be followed in anis where the insurance has been underwritten on a claims-made basis, because although this is a legitimate contract, it deviates from the loss-occurrence basis chosen by the Italian legislature as the typical way in which insurance shall operate.