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CORONAVIRUS: THE MEASURES OF IVASS AND EIOPA

Posted by | March 21, 2020 | comments
CORONAVIRUS: THE MEASURES OF IVASS AND EIOPA

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Due to the epidemiological emergency from COVID-19, which is also having a major impact on the insurance sector, IVASS and EIOPA have intervened in support of the sector, with a series of measures to support and the activity of companies, intermediaries and all operators in the sector.

To this end, IVASS has established intensive contacts with the industry to assess the administrative difficulties that market operators are experiencing in dealing with the Institute's regulatory requirements.

The Institute has intervened by adopting initial measures to support the activities of companies and intermediaries. These interventions concern, in particular, (i) insurance distribution, (ii) home insurance and (iii) complaints.

(i) With regard to insurance distribution - IVASS Regulation no. 40/2018 - by way of derogation from the provisions of Art. 90, paragraph 5, the verification tests of professional training courses may be carried out at a distance, in the manner provided for by Articles 91, 92, 93 and 94; the deadline for the transmission to the Institute of the Report on distribution networks, as per Art. 46 is extended to 29 March 2020.

(ii) With regard, instead, to home insurance - IVASS Regulation no. 41/2019 - the deadline for the mandatory adoption by companies of the so-called reserved internet areas, set at 1 May, is extended to 1 July 2020.

(iii) Finally, with regard to complaints - IVASS Regulation no. 24/200 - the deadline for the transmission to the Institute of the Report on Complaints and related documents, as per Art. 9, is extended to 29 March 2020.

IVASS is continuing its discussions with operators in the insurance market with the aim of reconciling the protection needs of citizens, insured and injured parties, with the proper exercise of its supervisory functions. The adoption of new measures will be announced in the coming days.

At the same time, EIOPA (European Insurance and Occupational Pensions Authority) also intervened during the health emergency that is affecting all countries, announcing a series of measures aimed at mitigating the impact of the pandemic on the insurance sector with a public press release.

The European Supervisory Authority stressed the importance of insurers being "able to guarantee the services offered to customers". To this end, national authorities were invited to adopt a flexible approach in the timing of reporting and disclosure of supervisory activities related to 2019. EIOPA will limit requests for information and consultations to essential elements only.

In the press release, EIOPA also drew attention to an important consideration: recent stress tests have shown that the system is well capitalised and therefore able to flexibly manage possible problems. The Solvency II framework also includes a number of tools that can be used to mitigate risks and impacts on the industry. EIOPA, together with the national authorities, has said it is ready to use the tools provided by the legislation to mitigate risks and possible impacts on the sector, in order to ensure the protection of policyholders and the financial stability of the system.

The companies were, in fact, invited to take the necessary initiatives to preserve their capital position, following prudent dividend distribution policies, including also forms of variable remuneration.

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