[Newsflash n. 8]

 

On 6 June 2016, IVASS (the Italian Insurance Supervisory Authority) published Regulation n. 24 on investments and coverage of technical reserves (“Regulation 24/2016”), which replaces the previous IVASS Regulation n. 36/2011 and implements in Italy the EIOPA Guidelines on System of Governance.

The new regulation removes the quantitative investment limits of Regulation 36/2011 and introduces the “prudent person” principle as leading criteria in the management of the investment portfolio of insurance and reinsurance companies.

Insurance companies are now required to adopt investment policies that are in line with the nature and the complexity of the business performed and to ensure to have in place efficient internal control systems. The assets in which technical reserves are invested will have to be described in a specific register kept by the companies.

Finally, the only express investment limits are set out by the new regulation in relation to the investment in (i) loans to entities different from natural persons and micro-enterprises and (ii) derivatives.

Regulation 24/2016 will enter into force the day after its publication in the Official Gazette. During the transitional period, insurance companies are anyway required to:

  • Comply with the new provisions regarding coverage of technical reserves and the relevant record keeping, starting from 1 October 2016;
  • Adopt by 30 September 2016 three investment policies: (i) investment policy; (ii) asset management policy, and (iii) liquidity risk management policy.

The Regulation (in Italian language only) is available for download at the following link: https://goo.gl/8RXAYz

 

Contacts:

Vito Vittore
Senior Partner

Elena Pagnoni
Of counsel

Luigi Bonifacio
Associate