[Newsflash n. 46]
On 18 April 2018, IVASS published a Letter to the market extending to EU insurance undertakings conducting business in Italy the application of the Guidelines for the simplification of insurance contracts.
Based on the findings that the majority of customers’ claims were due to the dissatisfaction from ambiguity and lack of clearness of contractual clauses – especially in terms of guarantees (what is covered by the insurance policy) and exclusions (what is not covered) -, in October 2016, IVASS prompted the insurance industry to tackle such inefficiencies of contractual documentation.
As a result, on 6 February 2018 ANIA (the Italian National Association of Insurance Companies), in conjunction with the main consumers associations and insurance intermediaries, issued the Guidelines for the simplification of insurance contracts. The Guidelines broadly set out a new contractual structure that is more straightforward (for instance repealing the distinction between general and special conditions) and recommends the use of plain language.
With the purpose of endorsing the Guidelines and promoting their application, IVASS published a first Letter to the market of 14 March 2018, whereby the Regulator essentially:
- recommends insurance companies to comply with the Guidelines;
- sets out the deadlines for Italian insurance companies to align their contracts to the Guidelines as follows: (i) 1 January 2019 for newly marketed insurance products and (ii) during the year 2019 for the main products already marketed;
- requires that companies clearly state, on the cover of contract, that the document has been drafted on the basis of the Guidelines;
- provides for the obligation for insurance companies to notify every quarter to IVASS the products that have been reviewed during the relevant period of time.
With the recent Letter to the market of 18 April 2018, IVASS basically extends the application of the Guidelines also to the EU insurance companies operating in Italy, under the same conditions set out by the previous letter (see above).
Please do not hesitate to contact us should you need any clarification on this and other insurance related matters.
Contacts:
Vito Vittore
Partner
Elena Pagnoni
Partner
Chiara Di Torrice
Associate
