The Insurance Act 2015 (the "Act") comes into force tomorrow. It represents a fundamental departure from existing insurance law. The changes impact on a number of key areas which are...11 August 2016
Italy: IVASS consultation on Regulation 36/2011 extending permitted investments for technical purposes
In particular, the new set of rules aims at widening the range of investments permitted to life and non-life insurance companies thus allowing them to benefit from greater investment diversification. In this regard, the category of allowed equity securities not traded on a regulated market would now also include units in limited liability companies. Moreover, the Consultation eliminates the limit of 5% for investments in (i) close ended funds not traded on regulated markets, (ii) reserved funds and (iii) hedge funds.
In addition, IVASS would now have the power to authorise insurance companies to carry out investments exceeding the limits set out in the Regulation itself, provided that certain conditions (in terms of risk management, compliance with the investment policy, safekeeping of the assets, etc.) are met.
IVASS stated that such amendments are expected to improve insurance companies' investments selection without affecting the companies' stability or undermining consumers' protection.
In light of the above, insurance companies, if the amendments are enacted, would be able to rely upon a wider range of risk-return combinations. The amendments would also open up a new market for asset managers.
The Consultation will end on 10 July 2014.
Please click here to download the Consultation (available in Italian only).
The Hogan Lovells’ Corporate Insurance Newsletter for July has been published. This provides a round-up of UK, EU and international regulatory developments relevant to UK based...04 August 2016
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