New undertaking in Italy

FAQ - New undertaking in Italy

Before setting up an insurance undertaking in Italy it is necessary to obtain the authorisation by IVASS.

1) How long does the authorisation process take?

If the investigation is completed successfully, IVASS shall issue the authorisation order within 90 days of the filing of the application, without prejudice to the cases of suspension or interruption of the authorisation procedure.
IVASS shall send the order to the undertaking, and publish it in the Italian Official Journal and in IVASS’ Bulletin.
The undertaking may start business only after its registration in the Register of undertakings.

2) What are the main applicable insurance regulations?

3) What shall IVASS assess?

For the granting of the authorisation IVASS shall assess that the sound and prudent management of the undertaking is ensured and shall verify:

  • compliance with technical-legal requirements (such as the articles of association, the scheme of operations, the reputation and the experience of the members of the administrative and control bodies);
  • financial soundness of the initiative.

4) What activities can be carried out?

The undertaking may pursue business:

  • in one or more life or non-life classes/risks;
  • simultaneously, in life assurance and Accident and Sickness insurance. In all the other cases the simultaneous pursuit of life and non-life insurance classes is prohibited.

5) What are the conditions for setting up a new undertaking?

IVASS shall verify that:

  • the undertaking has adopted the form of: società per azioni (company limited by shares), società cooperativa (cooperative company) or società di mutua assicurazione (mutual undertaking) or European company or European Cooperative Society;
  • the applicant undertaking has its general direction and administrative offices in the territory of the Italian Republic;
  • the undertaking holds the eligible basic own funds to cover the absolute floor of the Minimum Capital Requirement, equal to no less than:

1) EUR 2,500,000 for non-life insurance undertakings, save in the case where all or some of the risks included in one of the classes 10 to 15 listed in article 2 (3) of the Private Insurance Code (CAP) are covered, in which case it shall be raised to EUR 3,700,000;
2) EUR 3,700,000 for life insurance undertakings;
3) EUR 6,200,000, i.e. the sum of the amounts set out in points 1) and 2), for the undertakings simultaneously carrying on life and non-life insurance referred to under article 13 (1) of the CAP;

  • the undertaking shows evidence that it will be in a position to hold eligible own funds to cover the Solvency Capital Requirement and the Minimum Capital Requirement, going forward;
  • a scheme of operations in compliance with the indications given under article 14-bis (1 and 2) of the CAP is submitted together with the memorandum and articles of association;
  • the holders of qualifying holdings meet the good repute requirements (article 77 of the CAP) and there are sufficient grounds for granting the authorisation envisaged in the article 68 of the CAP;
  • the undertaking shows evidence that it will be in a position to comply with the law and IVASS regulation on the system of governance;
  • the persons charged with the administration, management and control functions and those who carry out key functions, also where they are outsourced, meet the professional, good repute and independence requirements (article 76 of the CAP);
  • there are no close links between the undertaking or the group entities and other natural or legal persons, which may prevent the effective exercise of supervisory functions;
  • the undertaking communicates the name and address of the claims representative appointed in each of the other member States, if the risks to be covered fall within classes 10 and 12 of article 2 (3) of the CAP, other than carrier's liability.

6) What documents and information must be provided?

The undertaking shall enclose to the application the documentation and information listed in the Private Insurance Code (CAP) and in ISVAP Regulation No. 10 of 2 January 2008, necessary to verify:

  • the financial soundness of the initiative;
  • the system of governance and the organizational structure;
  • the three-year scheme of operations;
  • the suitability of shareholders to ensure its sound and prudent management;
  • the fit and proper requirements of the persons who are charged with the administration, management and control functions and those who carry out key functions.

7) What exactly should the scheme of operations contain?

The scheme of operations refers to the first three financial years and it is approved by the administrative body. It contains qualitative and quantitative elements which are listed in the Private Insurance Code (CAP) and in ISVAP Regulation No. 10 of 2 January 2008, that fully illustrate the operational features of the undertaking. In particular, it provides information on:

  • the developments of the activity to be authorised (i.e. objectives, planned activities, strategies, such as the procedures of identification and taking up of risks);
  • estimates of technical and economic elements and capital adequacy;
  • the system of governance and the organizational structure.

The scheme of operations of an undertaking seeking authorisation to pursue the non-life insurance classes 10 (motor vehicle liability), 12 (liability for ships - sea, lake and river and canal vessels), 14 (credit), 15 (suretyship), 17 (legal expenses) and 18 (assistance) shall be supplemented with specific information and documents.

An undertaking seeking authorisation for the simultaneous pursuit of life assurance and the non-life insurance classes 1 (accident) and 2 (sickness) shall furnish the information envisaged for the scheme of operations, broken down by the two lines of business.

In case the undertaking is seeking authorisation also to the pursuit of reinsurance business, in addition to the above-mentioned information, the scheme of operations shall illustrate the nature of the risks which the undertaking proposes to cover, the retrocession policy as well as the data mentioned in the business plan in relation to reinsurance business.

8) When and why can IVASS deny authorisation?

IVASS denies the authorisation when, in case of full or partial non-compliance by the undertaking with the conditions for admission required by regulations, the undertaking doesn’t guarantee the sound and prudent management.

IVASS shall inform the undertaking of the rejection of the authorisation within 90 days of the filing of the application, without prejudice to the cases of suspension or interruption of the authorisation procedure.

9) When can an undertaking’s authorisation lapse?

In accordance with article 240 (1) (a) of the Private Insurance Code (CAP), the authorisation of single classes lapses (totally or partially) if the undertaking does not exercise them within the first twelve months.
If the undertaking has not started business within the first twelve months or has not carried on business for more than six months IVASS may grant an extension of not more than six months if there are justified reasons and at the request of the undertaking concerned.

Last update

14 July 2022