On 23 December, the Italian Insurance coverage Supervisory Authority (“IVASS”) printed a set of Q&As on insurance coverage distribution.
Such Q&As are the outcomes of a collection of conferences occurred within the final months between IVASS and insurance coverage corporations, insurance coverage distributors’ associations and shoppers’ affiliation Altroconsumo, pending a broader evaluate of the insurance coverage distribution regulation (particularly of IVASS Regulation no. 40/2018).
Subsequently, please discover beneath the Q&As.
1. In case of intermediation actions carried out partially by way of distance communication methods, is the middleman obliged to document phone conversations pursuant to article 83 of Regulation no. 40/2018?
Additionally contemplating the persistence of the emergency scenario, the Authority is reflecting broadly on the self-discipline of phone recordings and digital communications, evaluating any future regulatory interventions.
Pending a attainable regulatory evaluate, it stays understood that the recording obligation required by article 83 of regulation no. 40/2018 exists completely within the circumstances through which the distribution of insurance policies is to be carried out totally by way of distance communication methods, and never in circumstances the place, based mostly on the middleman’s group, phases of the promotion course of and placements of insurance policies often happen in particular person.
The recording obligations for the distribution of merchandise apply as effectively to Insurance coverage Primarily based Funding Merchandise (IBIPs), additionally in direction of potential prospects.
2. Within the circumstances of failure to conclude the contract, when does the time period begin to run as a way to decide the size of the conservation interval of the telephone recordings and digital communications pursuant to articles 83, paragraph 2-bis, and 67 of Regulation 40/2018?
In case of failure to conclude the contract, the dies a quo to calculate the timeframe of the conservation of the recordings and communications begins from the date of the final recording or digital communication.
3. Article 46, paragraph 1, lett. a), of Regulation no. 40/2018 requires corporations to have inner insurance policies and procedures as a way to guarantee compliance with the skilled and organizational necessities, together with these of integrity, supplied for the train of the distribution exercise carried out instantly and thru distribution networks.
With specific reference to intermediaries registered in part B of the RUI, we ask how this rule must be utilized, contemplating that insurance coverage or reinsurance mediators, often known as brokers, have relationships enterprise with a multiplicity of corporations which may undertake completely different insurance policies and procedures.
The monitoring actions carried out by corporations pursuant to article 46, paragraph 4 of Regulation n. 40/2018 for the aim of verifying the proper implementation of the insurance policies and procedures adopted and the associated outcomes should consider the completely different nature of the relationships that the distribution networks set up with the businesses.
On this regard, it must be thought-about that the dealer acts “on behalf of the shopper and with out powers of illustration of insurance coverage or reinsurance corporations “(see artwork. 109, para. 2, let. b) of the Code of Non-public Insurances).
Subsequently, artwork. 46, paragraphs 1 and 4, doesn’t authentic corporations to introduce procedures which can be pervasive and inconsistent (similar to, for instance, inspection interventions) with the place of independence and autonomy of the brokers class. The management of the necessities of professionalism and integrity required by this provision, due to this fact, will be based mostly on direct assumption of duty by brokers by way of self-certified declarations, to be supplied to corporations, per the laws as per Presidential Decree no. 445 of 2000 and according to greatest apply requirements of the market.
4. Just about the duty to draft the report on the management of distribution supplied for in article 46 of IVASS Regulation no. 40/2018, are the procedures already adopted just about earlier 12 months 2020 and clarified by the Authority in a selected FAQ confirmed for the 12 months 2021?
The report on the management of distribution for 2021 monetary 12 months is drawn up by the compliance operate that verifies the laws in regard to corporations based mostly on what’s supplied for in article 46 of IVASS Regulation no. 40/2018.
Pending the issuance of the brand new order as supplied for in article 46, paragraph 5, of IVASS Regulation no. 40/2018, Order no. 2743 of 27 October 2009 continues to seek out software, pursuant to article 104, paragraph 4, of IVASS Rules no. 40/2018. The report should be despatched inside sixty days of the tip of the calendar 12 months.
5. The pre-contractual documentation required by Regulation no. 41/2018 might also be delivered digitally?
The pre-contractual documentation required by Regulation no. 41/2018 will be delivered digitally in compliance with the provisions of artwork. 4 of the identical Regulation which, in accordance with artwork. 56 of Regulation no. 40/2018, requires that the supply obligations of the pre-contractual documentation are fulfilled within the method referred to in article 120-quater of the Code of Non-public Insurance coverage, i.e. on paper or, topic to the policyholder’s consent, on different sturdy medium.
The policyholder could make the selection on the communication strategies, additionally in regard to all subsequent contracts concluded with the identical firm, supplied that he/she will be able to change at any time the selection on the kind of modalities to obtain such info documentation (see artwork. 4 of Reg. 41/2018 and artwork. 61. of Reg. 40/2018). The distributor retains observe of the policyholder’s selection and informs the policyholder of the likelihood to vary at any time the selection made.
6. Which circumstances are thought-about “circumstances of higher seriousness” within the presence of which the corporate can take the measure of termination of the connection with the middleman pursuant to artwork. 9, paragraph 3, let. f), of Regulation no. 45/2020?
The “circumstances of higher seriousness” referred to in article 9, paragraph 3, let. f), of Regulation no. 45/2020 should be similar to to justify the extent of the interruption of the connection with the middleman. For instance, repeated violations of article 11, paragraphs 4 or 5 of Regulation no. 45/2020 by the middleman or the repeated violation of the intermediaries’ behavioral obligations supplied for by Regulation no. 45/2020 can represent “circumstances of higher seriousness”.
7. Pursuant to Article 11, paragraph 6, of Regulation no. 45/2020, the intermediaries who distribute merchandise marketed by insurance coverage corporations with registered workplace in a Member State working beneath the precise of multinational or the liberty to offer providers regimes within the territory of the Italian Republic undertake all safeguards obligatory to make sure that insurance coverage merchandise are distributed in compliance with Reg. 45/2020, with European and Italian legislation, with the wants, traits and goals of the efficient goal market. To which Italian laws such provision refers to?
The Italian laws referred to in article 11, paragraph 6 of Regulation no. 45/2020 are people who apply to international intermediaries in accordance with the overall good guidelines printed by the Authority, to which reference is made. In compliance with what these provisions envisage, it’s specified that the ban to distribute to shoppers who’re within the unfavorable goal market as per artwork. 11 of IVASS Regulation no. 45/2020 is relevant if the producer, approved to function in Italy, has recognized teams of shoppers whose wants, traits and goals usually are not appropriate with the insurance coverage product recognized.
8. Are intermediaries required to speak to the corporate the efficient goal market and the efficient unfavorable goal marketplace for every product distributed even within the occasion that, from an examination of its shoppers, it seems that such markets coincide with these recognized by the corporate?
Within the occasion that the efficient goal market and the efficient unfavorable goal market referred to, respectively, in paragraphs 1 and three of article 12 of Regulation no. 45/2020 coincide with these recognized by the producer, intermediaries can chorus from making the communication referred to in paragraph 5 of the identical article. In in any case, the middleman should promptly inform the corporate within the occasion that, following the assessments pursuant to article 12, the efficient goal market and the efficient unfavorable goal market ought to now not coincide with these recognized by the corporate.
9. It’s attainable to remove the communications to IVASS referring to shareholdings and shut hyperlinks supplied for in artwork. 109, paragraph 4-sexies of the Code of Non-public Insurances within the occasion that they don’t to intrude with IVASS’ supervisory powers?
Within the absence of a modification of the first regulation (artwork. 109, co. 4-sexies, of the Code of Non-public Insurance coverage) it’s not attainable to proceed by way of laws to the elimination of the duty to speak shareholdings and shut hyperlinks when they don’t intrude with IVASS’ supervisory exercise. Having stated that, it’s hereby clarified that the “shut hyperlinks” for which the communication should be despatched to the Authority are recognized in article 1, para 1, let. iii) of the Code of Non-public Insurances, and reference is made to the FAQs on the transmission to IVASS of the knowledge on shut hyperlinks and related shareholdings pursuant to article 109, para 4-sexies of the Code of Non-public Insurance coverage (see Order no. 84/2019), already printed on the Authority’s web site.