On 17 July, the Institute for Insurance Supervision (IVASS) launched a public consultation on the draft measure amending IVASS Provision No. 79/2018 (the “Provision”) regarding the criteria for calculating costs and any deductibles for determining compensation between insurance companies in the event of direct compensation.
IVASS intends to amend Annex 1 of the Provision by replacing it with a new Annex containing the technical description of the incentive and penalty model, the relevant calculation methods and any variables of the model.
According to the amendments proposed by the Institute, the new model (i) removes natural CARD claims from the average cost calculation and (ii) calculates cost dynamics using claims that have occurred across the entire national territory.
Comments and feedback can be sent to the Institute at provvedimentocard24@ivass.it by 16 September.