IVASS – Market Letter on POG

On March 27, IVASS (the Institute for the Supervision of Insurance) published a letter to the market addressed to insurance companies with registered offices in Italy, for branch offices, located in Italy, of companies with registered offices in third states and de facto producers, regarding the governance and control of insurance products – Product Oversight Governance (“POG”).

The letter follows the draft of the letter to the market published by the Authority in the public consultation procedure on October 6, 2023.

In the letter, IVASS elaborates 15 expectations addressed to insurance companies, aiming to align the market with the current regulatory framework and ensure uniformity in the application of national and European provisions.

IVASS emphasizes that despite progress in aligning the processes for product approval and the internal control systems with European and national provisions, significant deficiencies have emerged from the Authority’s controls, prompting IVASS to provide the supervised companies with indications for correctly implementing the applicable provisions.

Therefore, through the letter to the market, the Authority discloses its expectations regarding the POG, articulated in detailed indications concerning various aspects and including some concrete examples, with the additional purpose of offering companies guidance to facilitate the application of the regulations.