More than three years after the implementation of the Insurance Mediation Directive (2002/92/EC) the Italian insurance regulator, ISVAP has recently issued a consultation paper relating to proposed amendments to the regulations introduced in October 2006 governing insurance intermediaries (the so-called Regolamento Intermediari).
The proposed amendments are intended to update the mediation regulations in order to bring them more closely into line with current insurance market practice.
Included in the proposed amendments are a number of provisions which aim to establish detailed formalities for the enrolment (and cancellation) of intermediaries on the official register maintained by ISVAP; in addition, there is a proposal to update the limit of professional liability cover which intermediaries must hold.
The most significant change proposed would allow intermediaries to hold cash premiums from insureds in their own account rather than in a segregated account, provided that they can demonstrate their financial capacity by means of a bank guarantee for an amount equal to 4 per cent of aggregate premium cashed in the preceding year.
These new regulations are expected to enter into force in May 2009.