Objectives of the supervision and its main functions and activities

Supervisory objectives

Article 3 of the Code of Private Insurance (CAP): “The main purpose of supervision is ensuring suitable protection of insured persons and other persons entitled to insurance benefits. To this objective IVASS pursues the sound and prudent management of insurance and reinsurance undertakings as well as, together with CONSOB (the National Commission for Listed Companies and the Stock Exchange), each one in exercise of its respective competencies, their transparency and fairness to customers. Another purpose of supervision, which is subject to the previous one, is the stability of the system and of financial markets”.

Main supervisory functions

In accordance with articles 5 and 6 of the CAP, IVASS shall carry out functions of supervision over the insurance sector by exercising its powers of an enabling, prescriptive, investigative, protective and repressive nature, as set forth in the provisions of the Insurance Code.
In the exercise of its supervisory functions IVASS shall form part of the ESFS and participate in the activities it performs, taking into account the convergence in the supervisory instruments and practices within the EU.
IVASS, in the exercise of its duties, shall consider the potential impact of its decisions on the stability of the financial systems in the European Union, in particular in emergency situations, taking into account the information available at the relevant time, by also using appropriate exchanges of information with EIOPA, the Joint Committee, the ESRB and the supervisory authorities of the other member States. In times of exceptional movements in the financial markets, IVASS shall take into account the potential pro-cyclical effects of its actions.
IVASS shall adopt any regulation necessary for the sound and prudent management of undertakings or for the transparency and fairness in the behaviour of supervised entities, and to this end shall disclose all appropriate recommendations or interpretations.
IVASS shall perform the activities necessary to promote an appropriate degree of consumer protection and to develop the knowledge of the insurance market, including statistical and economic surveys and the gathering of input for the formulation of insurance policy lines.

IVASS carries out supervisory functions over:

• undertakings, however named and established, that exercise on the Italian territory insurance or reinsurance activity in any class and in any form, or capital redemption operations and management of group pension funds that effect payments on death or survival or in the event of discontinuance or curtailment of activity;
• insurance groups and financial conglomerates, which include insurance and reinsurance undertakings, in compliance with the specific rules applicable to them;
• subjects, entities and organisations which in any form perform functions partly included in the operational cycle of insurance or reinsurance undertakings, limited to insurance and reinsurance profiles, without prejudice to the powers with regard to insurance and reinsurance undertakings for their outsourced activities;
• insurance and reinsurance intermediaries and any other insurance market participant.

Main areas of ongoing or planned supervisory activity

To pursue its institutional objective of insurance market stability, IVASS carries out micro-prudential supervision, aimed at verifying the sound and prudent management of individual undertakings and insurance groups as well as macro-prudential supervision, aimed at analysing the trend of macroeconomic factors and, in general, of the possible external factors or specific issues which can have an impact on undertakings and on the insurance market as a whole.
In line with the tasks entrusted by the law, IVASS, in pursuit of the objective of consumer protection, works to ensure that insurance undertakings and intermediaries behave correctly and transparently with policyholders. IVASS carries out that mission based on five main guidelines:

• control over the transparency of insurance products and the fairness of sales practices;
• control over timeliness and fairness in the payment of compensations;
• handling of policyholders' and third parties' complaints against undertakings;
• assistance to consumers via the Contact Centre;
• dissemination of the insurance culture.