Andrea Maura Provides a Review of the New IVASS Regulation No 45 on Insurance Product Oversight, Governance Requirements and Insurance Distribution—Deadline 31.03.2021
On August 4, 2020 IVASS (the Italian Insurance Authority) issued Regulation no. 45 in matter of insurance product oversight and governance requirements (POG) related to the approval procedure for new insurance products and for existing products that are submitted to significant changes before being marketed and/or distributed (Insurance-Based Investment Products – IBIPs included).
The regulation completes the applicable discipline and implements the provisions of national and EU legislation.
The main topics relevant for insurance intermediaries acting in Italy under the right of establishment and under the freedom of services are (inter alia) the following:
- information flows between manufacturers (such as insurance companies) and distributors which must be governed by a specific written agreement subject to periodical review;
- distribution mechanisms of the products. In this respect, distributors must not distribute insurance products to customers included in the negative target market identified by the manufacturer;
- collaboration agreements between intermediaries (namely, horizontal collaboration). The Regulation sets out the terms of free collaboration relationships between intermediaries to ensure compliance with the obligations set out in it.
Also, on August 4, 2020 IVASS issued Provision no. 97 which:
- completes the rules on the distribution of IBIPs carried out by insurance companies, agents and brokers and
- amends several ISVAP (former Italian Insurance Authority) and IVASS regulations (i.e. ISVAP Regulation no. 23 and 24 of 2008 on premiums and contract terms disclosure in compulsory insurance for motor vehicles and craft and on complaints management respectively and IVASS Regulation no. 38, 40 and 41 of 2018 on Insurance distribution, Information, advertising and design of insurance products and on corporate governance respectively.
The main changes are those relevant to Regulation n. 40, such as:
- amendments in the provisions about demands and needs test (IBIPs and non IBIPs insurance products);
- amendments to Annexes relevant to precontractual information about the distributor/intermediary and
- a new set of norms (i.e. conduct and transparency obligations, including the inducements discipline) relevant to the distribution of IBIPs products by insurance companies, brokers and agents*. A similar legislation has been issued on 29, July 2020 by Consob (the Italian national commission for listed companies and the stock exchange) for the distribution of such products by banks, financial intermediaries, etc. (i.e. insurance intermediaries enrolled in the “D” section of Single Register of Intermediaries held by IVASS*).
that has been globally revised by the Supervisor.
* including those acting in Italy under the right of establishment and under the freedom of services regime.
Please note that IVASS Regulation n. 45, IVASS Provision n. 97 and CONSOB legislation mentioned above will enter in full force on 31, March 2021.
We are at your disposal for further information and/or to provide you with our assistance. Andrea Maura is a Member of Italian Insurtech Association and a Partner at Legalgrouds, the Aliant® member firm in Rome.