IVASS issues clarifications on run-off portfolio transfers

On 13 January 2021, by order no. 107 of 12 January 2021, IVASS approved changes to Regulation no. 14 of 18 February 2008 in the matter, inter alia, of portfolio transfers.

(1). Who is affected by the changes?

The order affects:

• domestic (ie Italian) insurers and Italian branches of third-country insurers involved in a portfolio transfer transaction; and
• those entitled to insurance benefits deriving from polices issued by the ceding undertaking.

(2). What’s new?

The existing ban on transfer portfolios formed only of claims has been cancelled. The definition of “Portfolio” under Article 2, paragraph 1, letter f), of Regulation no. 14 has been amended accordingly.

(3). What’s the reasoning behind the changes?

The reason for the changes is to allow greater flexibility in the management of the insurance business and align domestic rules to those in place in several European countries.

(4). Entry into force

The new measure will enter into force on its publication in the Official Gazette of the Italian Republic, which is expected shortly.