New regulations published by IVASS and annual provisions of competition law of interest to the insurance sector
On August 31, 2022, the Italian Insurance Supervisory Authority (“IVASS”) issued two regulations. Especially:
1. IVASS Regulation n. 52/2022 (“Regulation 52”)
Regulation 52 sets out the provisions pursuant to Legislative Decree no. 73/2022, regarding the possibility of valuing non-durable securities based on the value resulting from the last annual financial statement.
Regulation 52 applies to Italian insurance companies which, in accordance with article 91, paragraph 2, of the Private Insurance Code, draw up financial statements in accordance with Legislative Decree no. 173/1997.
Said by-law 52 implements art. 45, paragraphs 3-octies, 3-novies and 3-decies of Legislative Decree no. 31/2022 which, given the exceptional situation of instability of the financial markets, allows companies that do not adopt international accounting standards, to derogate, in the current year from the date of entry into force of said decree , to the rules of the Italian Civil Code on the criteria for the evaluation of non-durable collateral.
In particular, all companies that, also for 2022, intend to make use of this option are required to submit additional information to IVASS, to allocate the profits resulting from the exercise of the right to an unavailable reserve and are subject to disclosure requirements (financial report management, explanatory notes to the accounts, comments on the half-year report), and also indicate the valuation methods used and the amounts of the accounting items relating to the exercise of this option.
The exercise of this right with respect to non-durable securities has no impact on the prudential size of companies, including those subject to the regime provided for by IVASS regulation no. 29/2016.
Finally, Regulation 52 repeals IVASS Regulation no. 43/2019 relating to the implementation of the provisions on the temporary suspension of capital losses on non-durable securities.
Regulation 52 is available, only in Italian, at the following link: https://www.ivass.it/normativa/nazionale/secondariaivass/regolamenti/2022/n52/index.html?com.dotmarketing.htmlpage.language=1
2. IVASS Regulation n. 53/2022 (“Regulation 53”)
Policy 53 provides for the use of outside agents for mystery shopping activity to ensure consumer protection.
In particular, Regulation 53 provides the terms under which mystery shopping activities must be conducted, as well as the requirements that these IVASS-appointed agents must possess and their duties.
In order to ensure the quality and reliability of mystery shopping activities, Articles 5 and 6 of Regulation 53 provide for the requirements of professionalism, experience and independence that the external agent must have, as well as the duty to confidentiality of information collected and guarantee professional secrecy.
Article 7, on the contrary, provides for the procedures for determining the fees of these external agents.
Regulation 53 is available, only in Italian, at the following link: https://www.ivass.it/normativa/nazionale/secondaria-ivass/regolamenti/2022/n53/index.html
Finally, in the annual Competition and Market Law no. 118/2022, which entered into force last August, article 28, paragraph 2, amends article 17, paragraph 4-quarter of Legislative Decree no. 141/2010 (which transposes Directive 2008/48/EC on consumer credit contracts and amends Title VI of the Consolidated Banking Law with regard to the provisions concerning natural persons operating in the financial sector, financial agents and credit brokers).
The new paragraph 4 quater of the aforementioned article 17 establishes that the activity of credit brokerage is compatible with the activity of insurance and reinsurance brokerage, financial advice and real estate agent, provided that these persons are registered in the corresponding register and have the conditions provided for by the aforementioned Legislative Decree no. 141/2010, the Private Insurance Code and the regulations on financial intermediation. The requirements verification process is carried out through a computer system.
The aforementioned activities must be carried out in accordance with the relevant legislation of each sector.