IVASS takes further step to simplify insurance pre-contractual information

On 23 November 2023, the Insurance Supervisory Authority (IVASS) issued consultation document no. 9/2023. It amends some provisions of IVASS Regulation no. 40/2018 and IVASS Regulation no. 41/2018 in the matter of insurance pre-contractual information.

The new provisions aim to increase the effectiveness of pre-contractual information by simplifying and streamlining the language, ensuring consistency between pre-contractual documents and policy wordings.

The aim is to ensure better protection for the policyholder/insured party through clear and comprehensive documents.

IVASS’s intention is also to reduce the organizational burden on distributors, in particular where current disclosure requirements have been assessed to be ineffective.

Finally, the proposed actions also take into account the need to ensure proper coordination and consistency with European and national regulatory developments on sustainable finance.

We’ll take a look at the most relevant amendments.

 

Amendments to IVASS Regulation no. 40/2018 – distributor’s information to be provided

The new measures aim to:

• reduce the number of information documents distributors have to provide by introducing a unified pre-contractual model (Modello Unico Precontrattruale – MUP), differentiated by product type (IBIP and non-IBIP), which would replace the multiple forms in place (ie Annexes 3, 4 and 4-bis);
• delete Annex 4-ter, which sets out the distributor’s conduct obligations;
• remove the additional obligation for distributors to post informative material on its website or display it on its premises;
• allow the company, if it also acts as distributor, to fulfil its complaint-related information obligations by providing additional IPID directly to policyholders;
• allow the disclosure of information on conflicts of interest pursuant to Article 120-ter, (1) (e) of Insurance Code to be fulfilled either by publication on the website or by display on the premises.

 

Amendments to IVASS Regulation no. 41/2018 – Additional IPIDs

The new measures aim to:

• simplify the content and the structure of the Additional IPID, which will have a new format (one specifically for life products; one for non-life products; and one for motor insurance), focused on the following main elements only:
• costs
• guarantees, exclusions and limitations, target client
• tax regime
• mandatory information pursuant to Article 185 of the Insurance Code (solvency, claims, applicable law)
• introduce a page limit for the Additional IPID (ie 3 pages) and delete the requirement to include useless “empty” sections just to refer to the IPID or to the policy;
• for IBIPs, assimilate additional DIPs to KIDs to facilitate comparability.

 

Sustainable finance

The purpose of the draft is also to align the IVASS regulatory provisions with European legislation on sustainable finance, which began with Order no. 131 of 10 May 2023. This is to ensure compliance with changes made by the Regulatory Technical Standards (RTS) adopted by Delegated Regulation (EU) No. 2022/1288, in force since 1 January 2023 and supplemented by the subsequent Delegated Regulation (EU) 2023/36316. It will also align the distributor's disclosure (Regulation No. 40/2018) and achieve alignment with the manufacturer's disclosure (Regulation No. 41/2018).

The consultation paper is open for comments until 22 January 2024 to be submitted by email filing in this form from the IVASS website.