Italy Insurance Information

CIA link to demographic/economic data on Italy

General Italy Insurance Information

• Compulsory Insurance:
  
  1. Workers’ Compensation (Social Security Scheme for blue-collar workers- INAIL);
  2. Third Part Automobile Liability;
  3. Nuclear Liability;
  4. Watercraft Liability;
  5. Hunter’s Liability;
  6. Insurance Brokers;
  7. Auditor’s Liability;
  8. Life and Pension for Executives.
• Non-Admitted Insurance:
  Strictly prohibited except as provided by EU legislation.
• Policy Wordings & Rates / Tariffs Controlled:
  Insurers can set rates and policy wordings (general conditions are filed with the Authorities). Italy has a number of Tariff associations which establish rate guidelines. There is no requirement that these tariffs be followed but practice dictates a large degree of conformance.
• Policy Language:
  Italian.
• Types of Insurance Restricted to Government Institutions:
  Workers’ Compensation.
• Policy Currency:
  euro (EUR)
  note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries. U.S. $ insurance is available.
• Currency Restrictions / Exchange Controls:
  No restrictions.
• Policy Period:
  Annual is the norm but a number of long-term policies (1-10 years). There are heavy penalties for canceling long-term policies.
• Cancellation Provisions:
  90 day written (registered) notice prior to expiration.
• Premium Tax, etc. paid by Insured (This area needs to be checked as premium taxes in Italy have traditionally generated huge tax revenues and EU ‘harmonization’ of taxes may suppress premium taxes in exchange for the imposition of VAT):
  Fire - 22.25%;
  Automobile - 11.5%;
  Bonds - 12.5%;
  Personal Accident - 2.5%;
  Marine - 12.5%;
  Liability - 22.25%.
  
• Insurance Companies:
  All Insurers and Reinsurers licensed in Italy are subject to Government Supervision.
• Brokers:
  Brokers must be registered and represent approximately 15-20% of the market. Agents can represent more than one Insurer.
• Brokerage Commissions:
  Fire - 22%;
  General / Public Liability - 23%;
  Product Liability - 20%;
  Personal Accident - 23%;
  other lines - between 15-30%.
  
• Broker of Record Letters:
  Not required; however, BORs are becoming the custom.
• Reinsurance:
  Pure fronting is prohibited (100% is not exportable).
• Local Natural Hazards:
  Earthquake & Flood. The market practice relating to deductibles for these perils is a limit of 50%-60% of the sum insured, depending on the size of the risk.
• Other Information:
  

Property Insurance

• Fire:
  Standard fire perils include - fire, lightning, aircraft, explosion. Earthquake, flood, storm / tempest, burst water pipe, riot / civil commotion, malicious damage, windstorm / hurricane, vehicle impact, weight of snow / avalanche are available in the market for an additional premium charge.
• All Risk:
  Available - becoming commonplace.
• Coinsurance:
  100%.
• Blanket Insurance:
  Available.
• Business Interruption:
  UK Loss of Profits and U.S. Gross Earnings are available.
• Replacement Cost:
  Available (for no additional premium charge).
• Discount for fire protection equipment / systems: Available & discount negotiable.

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  Various broad forms available. Damage to boilers and pressure vessels by explosion can be covered under the Fire policy. Machinery Breakdown policy wordings can follow local or foreign wordings. Periodic inspections are required by law but can be arranged through independent inspection services.

General / Public Liability

• Available Wordings:
  

  General / Public Liability

  including Product Liability, Tenant’s and Neighbor’s Liability and Employer’s Liability as well as other extensions. Product Recall insurance is available on a very selective basis.
• Comments:
  Policies are mostly written on an occurrence basis. Claims Made forms are unusual.

Automobile / Motor

• Compulsory Limits:
  Combined Single Limit: Lit 1,500,000,000.
• Comments:
  Insured and any licensed individual driving with Insured’s permission are covered under the policy. Third Party Liability premiums are determined by Government Authorities. Passengers are deemed to be Third Parties and therefore, covered.

Workers’ Compensation

• This insurance is mandated by Italian law under a monopoly scheme - INAIL. It is intended to cover industrial workers, including maritime employees. This does not preclude private cover being bought separately.
• Comments:
  This insurance is mandated by Italian law under a monopoly scheme - INAIL. It is intended to cover all industrial workers, including maritime employees. Extra-Territorial benefits can be included upon special request to INAIL. Medical Expenses and Occupational Disease benefits are included under the Scheme.

Marine

• Available Wordings:
  Either Italian forms or the Institute of London Underwriters. Coverage can be written on an All Risks basis but Named Perils most common. The rating is completely free.

Crime

• Available Coverages:
  Fidelity, Computer Crime, Surety, and locally developed versions of 3-D and Bankers Blanket Bonds are available.