The Italian Government recently implemented Directive 2005/68/EU on reinsurance, through a legislative decree amending the relevant provisions of the Code of Insurance.

The legislative decree introduces the concepts of finite reinsurance, captive reinsurance undertaking and special purpose vehicle to Italian law. It also implements the single passport regime, but with a wide application as it provides for the possibility for EU and non-EU reinsurance companies to operate in Italy under the freedom of services regime, without previous local authorisation or collateral.

The legislative decree requires further implementing measures, with further regulations required by the Italian regulator in order to provide details of provisions relating to the technical reserves of reinsurers and the solvency requirements for special purpose vehicles. These regulations are expected to be issued by the end of this year.