Insurance Arbitrator: A new out-of-court mechanism for resolving insurance disputes

On 6 November 2024, Decree No. 215 established the Insurance Arbitrator, an independent body set up by the Ministry of Enterprises and Made in Italy, in collaboration with the Ministry of Justice. Published in the Official Gazette on 9 January 2025, this initiative places the Arbitrator under the authority of IVASS (the Italian Insurance Supervisory Authority).

The Insurance Arbitrator should offer a streamlined alternative to traditional mediation, aiming to resolve certain insurance disputes efficiently, affordably, and with strong consumer protection in mind.

 

Scope of application

The Insurance Arbitrator handles disputes arising from insurance contracts, including compensation claims and issues involving rights, obligations, or options related to insurance benefits. Complaints about violations of conduct rules outlined in the Italian Private Insurance Code (Chapter IX, Sections IV, III-bis, and III-ter) are also within its remit.

But some disputes are excluded from its jurisdiction:

• Disputes related to large risks (as defined in Article 1, paragraph 1, letter r, of the Insurance Code).
• Claims managed by the Guarantee Fund for Victims of Hunting and Road Traffic.
• Disputes overseen by CONSAP.

Claims before Insurance Arbitrator may also concern the payment of a sum of money, provided the following limits are not exceeded:

• Life insurance: up to EUR150,000, or EUR300,000 for Class I policies where benefits are paid only upon death.
• Non-life insurance:
• EUR2,500 for third-party civil liability claims filed by individuals with direct action rights.
• EUR25,000 for all other types of non-life insurance disputes.

 

Access requirements and procedure

To file a claim with the Insurance Arbitrator, the claimant first has to submit a formal complaint to the insurance company or intermediary in compliance with IVASS Regulation 24/2008. This complaint must be filed within the preceding 12 months. If the company’s response is unsatisfactory or absent, the claimant can proceed with filing a claim.

The claim must be filed within 12 months of receiving the company’s response or the deadline for a response. Disputes related to events that occurred more than three years before the complaint are inadmissible.

For complaints filed before the launch of the Arbitrator, the filing deadline is extended by an additional 12 months from the date the system becomes operational.

The claim must include proof of the original complaint and supporting evidence. The process is modeled on the Financial Banking Arbitrator (ABF) and follows similar rules and deadlines.

The procedure is fully digital. The individual can submit claims directly, without legal representation, or through a proxy or consumer association. Cases are decided exclusively based on written documentation, although the Arbitrator might, in rare instances, choose to hear from the parties. No expert reports or oral testimony are permitted.

Decisions are issued within 90 days, with extensions allowed only for complex cases.

 

Automatic membership for insurers and intermediaries

Insurance companies and intermediaries operating in Italy are automatically included in the arbitration system through their existing registration in national directories (eg the Register of Insurance Companies or the Unified Register of Intermediaries).

However, companies operating under freedom of services or freedom of establishment can notify IVASS of their decision to opt out, if they identify an alternative dispute resolution (ADR) mechanism recognized in their home member state.

 

Consequences of non-compliance with arbitrator decisions

While the Insurance Arbitrator’s rulings aren't legally binding, non-compliance may carry reputational consequences.

Any instance of non-compliance will be publicly disclosed on the Arbitrator’s website for five years. For six months after publication, the non-compliant company or intermediary has to display this information prominently on its homepage and provide proof of compliance to the Arbitrator’s secretariat.

 

Effective date

Under Article 13 of the Decree, IVASS must issue detailed technical and procedural regulations by 9 May 2025, four months after the regulation’s effective date (9 January 2025). These regulations will outline membership procedures, claim filing requirements, and the appointment process for arbitration members.

The Arbitrator will officially become operational following an IVASS measure, expected within five months of the publication of the technical regulations, ie by 9 October 2025.