On 18 November 2009 ISVAP issued a consultation on a draft regulation on reinsurance activities (the "Reinsurance Draft Regulation"). This consultation paper is the final regulatory stage in the implementation of the Reinsurance Directive (Directive 2005/68/EC) in Italy.

The Reinsurance Draft Regulation aims to regulate all reinsurance activity in Italy. It establishes rules governing: the authorisation required to carry on reinsurance activities, the extension of authorisation to other classes of business, the requirements for reinsurers with a registered office in Italy to operate in other Member States.

In addition the regulation governs reinsurer’s capital requirements, and procedures that need to be followed in order to amend company bylaws and carry out M&A transactions. The regulation applies to both Italian reinsurers and branches from third countries. The regulation will also be applicable to an insurance company which carries on reinsurance activities.

The consultation on the draft regulation will close on 15 January 2009. Once the regulation comes into force the Reinsurance Directive will finally be fully implemented in Italy.