With Provision 147/2024 dated June 20, 2024, IVASS has introduced significant amendments to:
- Regulation 40/2018, laying down provisions on insurance and reinsurance distribution;
- Regulation 41/2018, on transparency, disclosure, and design of insurance products.
IVASS acknowledged that the current provisions on distribution and pre-contractual disclosure have increased significantly the costs for operators to provide the information required but have not strengthened the effectiveness of such information.
Among the main issues, IVASS has identified: (i) an excessive number of forms delivered to the Client; (ii) a partial duplication of the same content; (iii) an excessive length of additional DIP; (iv) the overlap of information present in additional DIP and in DIP or KIDs.
IVASS has, therefore, intervened with Provision 147/2024 to simplify and streamline the existing regulations.
Following the amendments to Regulation 40/2018:
- the Single pre-contractual form (MUP) for insurance products;
- and the Single pre-contractual form (MUP) for insurance investment products,
Have replaced Annex 3 (distributor Information), Annex 4 (Information on the distribution of non-IBIP insurance products), Annex 4-bis (Information on the distribution of insurance investment products), and Annex 4-ter (List of distributor conduct rules).
Regarding Regulation 41/2018, the amendments made by the Provision aim to:
- simplify the structure of DIP by eliminating redundant elements;
- introduce a page limit (no more than 3) for the drafting of additional DIP;
- for IBIPs, standardize the nomenclature between additional DIPs and KIDs.
Companies will have 12 months from the entry into force of Provision 147/2024 to comply with the introduced amendments.