Brexit - provisions introduced by decree-law No. 183/2020 called "Milleproroghe"

Category
Undertakings, Other
Description

At the end of the European transition period (31 December 2020) UK’s withdrawal from the EU has been completed. As from 1 January 2021 UK insurance undertakings, which are now third-country operators, shall be subject to the regulations applicable to these operators.

The Italian Government, by decree law No. 183/2020 called “Milleproroghe”, has introduced transitional measures for banking and financial intermediaries and insurance undertakings with head office in the United Kingdom.

In particular, insurance undertakings with head office in the United Kingdom which, until 31 December 2020 were licensed to carry out business in Italy under the right of establishment and/or the freedom to provide services, have been removed, as from 1 January 2021, from the lists kept by IVASS. They shall continue their business limited to the management of existing covers, without commencing new business or renewing existing contracts, until their maturity or until any other deadline defined by the undertaking in a specific Plan to be submitted to IVASS

These undertakings must:

  • inform policyholders, insureds and those entitled to insurance benefits of the operating regime applicable to them, within 15 days of the end of the transitional period, also by disclosing it in their website;
  • submit to IVASS, within 90 days of the end of the transitional period, a Plan detailing the measures allowing them to regularly and expeditiously execute the contracts and covers existing at that date, including the payment of claims;
  • submit, every year, a report to IVASS illustrating the state of implementation of the Plan.

Consumers (policyholders, insureds and those entitled to insurance benefits):

  • must be informed by the undertaking based in the UK about the arrangements in which the undertaking will continue to do business; such information may also be published only on the undertaking’s website;
  • as from 1 January 2021, may withdraw from the contracts with a duration of more than one year without any additional charge, informing the undertaking in writing, or avail themselves of the other means of terminating the contract. The withdrawal shall take effect from the expiry date of the first annual premium following the year of the withdrawal;
  • may not use tacit renewal clauses;
  • may send complaints directly to the undertaking, according to the terms and conditions envisaged in ISVAP Regulation No. 24/2008 and, where the dispute is not resolved, to IVASS.

For any further information you can consult the dedicated page on IVASS’ website.

Issue date
15 January 2021