On November 26, 2024, the Italian Institute for the Supervision of Insurance (IVASS ) issued Provision No. 151/2024, introducing amendments to ISVAP Regulation No. 38/2011 concerning segregated funds (“gestione separata”). This measure continues the reform initiated by IVASS Provision No. 68/2018, which allowed companies to allocate net capital gains from the sale of securities to a “profit fund” classified as a mathematical reserve, to be used in calculating the average rate of return.
Previously, this option was limited to new contracts, as the segregated fund regulations, forming part of the contractual terms, could not be unilaterally amended for existing contracts. With Provision No. 151/2024, IVASS extends the application of the profit fund to existing contracts as well, provided that companies meet specific requirements and follow defined operational guidelines.
This innovation aims to enhance the managerial flexibility of insurance companies, ensuring greater stability of returns over time. Furthermore, it seeks to support the revival of contracts with revaluation-linked benefits, making them more competitive and sustainable in the long term.