IVASS Modifies the Regulations of Eligibility Requirements and Criteria for Insurance Companies: Algoritmic is ready to assist its Clients

Rome, July 12 2023

IVASS has placed the new regulation in public consultation which coordinates the secondary regulation with the provisions on the matter in the Private Insurance Code and in the Ministerial Decree of the Ministry of Economic Development no. 88/2022.

The main innovations envisaged by the draft Regulation are:

1. the introduction of Chapter II bis which prescribes new procedural provisions for assessing the suitability of company representatives and managers of the internal audit, risk management and compliance verification function.
2. The provisions on the minimum content of the address policies defined by the Administrative Body. Address policies document – minimal content.
3. The mandatory nature of the questionnaire, previously sent to companies with Letter to the market, the compilation of which was envisaged only on a voluntary basis.

As can be read in the Report presenting the provision, IVASS found that the use of the new tool was scarce, generating inefficiencies in the acquisition of relevant information by operators. This circumstance has also led to a significant increase in the supervisory action, considering the incisiveness of the discretionary assessment that is now entrusted to the Institute.

On these bases, IVASS has deemed it mandatory to use the questionnaire, which is now attached to the Provision, which will allow standardizing the information flows between the undertaking and the representatives/holders of the functions and subsequently with the Authority.

In this regard, it should be remembered that Algoritmic®, stimulated by the requests of some of its customers, has already “engineered” the IVASS questionnaire by creating a Tool that allows the following functions:

• Guided compilation of the questionnaire. When completing the questionnaire, each company representative is offered for compilation only the necessary sections, according to the office held in the company;
• Collection of qualitative/quantitative information necessary for any assessments of interlocking situations;
• Automatic enhancement of section 4. time availability (Time Commitment). Based on the inputs provided by the representative, the tool automatically determines the effective availability of time of the representative for the performance of the office, also taking into account all the other administrative, management and control positions held, as well as any professional/ work carried out;
• Automatic generation of the text of the self-declaration in lieu of notary deed: Filling in the sections of the questionnaire by the exponent allows for the automatic generation of the PDF of the self-declaration in lieu of notary deed, ready to be signed by the exponent;
• Generation of a support synthesis Dashboard for the adequate assessment of the collective composition of the bodies. The tool also makes it possible to automatically acquire the answers provided by each company representative by producing a summary Dashboard of the body (with evidence of the diversification and distribution of responsibilities) which is also useful for directing the correct assignment of duties in the internal board committees.

The tool will be distributed in the coming weeks to the first customers.

Click HERE to read the outline of the IVASS provision.