April 4, 2022
Italy publishes draft IVASS Regulation regarding online comparison system between insurance undertakings operating in Italy in the motor liability insurance sector
On 17 March 2022, IVASS (Italian Insurance Supervisory Authority) put out for public consultation the draft regulation on the implementation of an on-line comparison system between insurance companies operating in Italy in the motor liability insurance class (the Regulation), pursuant to articles 132-bis and 136, paragraph 3-bis, of Legislative Decree No. 209 of 7 September 2005 - Private Insurance Code (the CAP). The purpose of this Regulation is to set up an online comparison system for premiums under the "basic contract" offered by insurance companies operating in Italy in the motor liability class, to facilitate the comparison for users (PREVENTIVASS).
The new provisions contained in the draft Regulation have been drafted taking into account the numerous comments made by stakeholders during the first consultation of the Regulation which took place in 2021. In light of these comments, the text of the Regulation has been revised and supplemented and therefore a second public consultation was deemed appropriate, whereby IVASS has consulted again with market operators to take into account their needs, with the intention of further reducing the impact of the provisions and ensuring the objective of greater transparency for the protection of consumers.
Furthermore, IVASS specified that these provisions are applicable to insurance intermediaries authorized to distribute motor liability contracts registered in sections A), D) and F) of the RUI, as well as to those - authorized to distribute motor liability contracts - located in another Member State of the European Economic Area operating in Italy.
Any observations, comments and proposals must be sent to IVASS by 16 April 2022.
The main comments received during the first public consultation related to:
As noted, the revised draft Regulation reflects the comments from the first public consultation. Accordingly, the structure of the draft Regulation sets forth the following:
The FIRST PART of the draft Regulation contains general provisions relating to the regulatory sources, definitions and subjective and objective scope of application.
In particular, the Regulation applies: (i) to insurance companies with registered offices in Italy that carry on business in the motor liability insurance class, to the branches of insurance companies with registered offices in a non-European Economic Area member State that carry on business in Italy in the motor liability insurance class and to insurance companies with registered offices in another European Economic Area Member State that are admitted to operate in Italy in the motor liability insurance class and to insurance companies with head office in another member State of the European Economic Area admitted to operate in Italy under the regime of establishment or of freedom to provide services in the motor liability insurance class; (ii) to agent intermediaries on behalf of the above-mentioned companies registered in Sections A, D and F of the RUI and in the annexed list. The scheme of regulations applies to the quotation of the aforementioned basic motor liability contract, limited to passenger cars, motorbikes and mopeds for private use by the consumer.
Estimates for the basic motor liability contract relating to vehicles registered or insured abroad and to risks deriving from the circulation of fleets of vehicles are excluded from the regulation.
The SECOND PART concerns the methods of organization and operation of PREVENTIVASS and is divided into three Titles:
The THIRD PART, which contains the final provisions, is aimed at harmonizing the provisions on the validity of the estimate and introduces amendments to the rules on free personalized estimates at points of sale. Finally, it defines the procedures for the publication and entry into force of the Regulation.
ANNEX 1 reports on the conditions of operation of insurance companies and includes all the functionalities made available by PREVENTIVASS for the fulfilment of the requirements of the Regulation scheme.
For additional information with respect to this Alert, please contact the following:
Studio Legale Tributario, Milan