Italy insurance market

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RCA / RC Auto

Compulsory insurance covering civil liability arising from bodily injury or property damage caused to third parties by a motor vehicle. Governed by the Private Insurance Code and mandatory since Law 990/1969.

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IVASS

Istituto per la Vigilanza sulle Assicurazioni. The Italian insurance regulator, integrated with the Bank of Italy since 2013. Supervises solvency, conduct, consumer protection and intermediary registration.

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Polizza

The contract document evidencing the insurance agreement between the insurer (impresa) and the policyholder (contraente), specifying cover, exclusions, premium and term.

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Premio

The price paid by the policyholder to the insurer in exchange for insurance coverage over the policy period.

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Sinistro

An insured event (accident, damage, illness etc.) that triggers the policyholder's right to claim indemnification or benefit from the insurer.

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Indennizzo / Indennità

The amount paid by the insurer to the insured or beneficiary following a covered loss, intended to restore the pre-loss financial position.

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Contraente

The person or entity that enters into and signs the insurance contract with the insurer, undertaking to pay premiums. May differ from the insured person.

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Assicurato

The person whose life, health or assets are covered under the insurance policy. May be the same as or different from the policyholder.

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Beneficiario

The person designated to receive the insurance benefit or indemnity payment, particularly in life insurance policies.

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RUI

Registro Unico degli Intermediari assicurativi e riassicurativi. The IVASS-managed register in which all insurance intermediaries (agents, brokers, banks, financial intermediaries, collaborators) operating in Italy must be enrolled.

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Broker assicurativo

An independent intermediary (registered in section B of the RUI) who acts on behalf of the client rather than the insurer, providing risk advice and placing insurance with multiple insurers.

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Agente assicurativo

An intermediary (section A of the RUI) who acts on behalf of one or more insurers under a mandate, selling and managing policies. Agents may be monomandatari (single insurer) or plurimandatari (multiple insurers).

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Bancassicurazione

Distribution of insurance products through bank or post-office branches, typically under exclusive or preferred partnership agreements between a bank and an insurer, dominant in Italian life insurance.

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Riserva tecnica

Funds set aside by an insurer to meet estimated future claims and obligations. Under Solvency II, valued as the Best Estimate Liability plus a risk margin.

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Franchigia

The amount of a loss that the policyholder must bear before the insurer pays. Under the Cat Nat obligation, the deductible/excess must not exceed 15% of the damage amount.

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Polizza catastrofale (Cat Nat)

An insurance policy covering damage to business assets caused by natural catastrophe events (earthquake, flood, landslide, inundation). Mandatory for all Italian businesses under the 2024 Budget Law.

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Liquidazione coatta amministrativa

A special insolvency procedure for insurers ordered by Ministerial Decree on IVASS recommendation, placing the company under a government-appointed liquidator to protect policyholders.

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Codice delle Assicurazioni Private (CAP)

D.Lgs. 209/2005. The principal Italian insurance statute, consolidating all key rules on insurer authorisation, solvency, distribution, consumer protection and supervision by IVASS.

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Libera Prestazione di Servizi (LPS)

The right of an EEA-authorised insurer to provide insurance in Italy on a cross-border basis without establishing a physical presence, subject to notification between home and host supervisors under Solvency II.

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Arbitro Assicurativo

IVASS-administered out-of-court body for resolving insurance disputes between consumers and insurers/intermediaries, providing binding decisions as a low-cost alternative to litigation.

How large is the Italian insurance market?

In 2024 the Italian insurance market recorded approximately EUR 170 billion in total premiums, a 16.2% increase on 2023, driven mainly by life insurance growth of 19.5%. The non-life (danni) segment surpassed EUR 51 billion in premiums by end-2025 for the first time in history.

Who is the insurance regulator in Italy?

IVASS (Istituto per la Vigilanza sulle Assicurazioni) is the insurance supervisory authority, integrated with the Bank of Italy since 2013. IVASS supervises market conduct, solvency, consumer protection and intermediary registration. For capital-market-linked products (unit/index-linked), CONSOB has concurrent supervisory powers.

Is motor third-party liability insurance (RC Auto) compulsory in Italy?

Yes. RC Auto (Responsabilità Civile Autoveicoli) has been mandatory since Law n. 990/1969. All vehicles circulating on public roads must be covered. Failure to insure is a criminal offence and leads to vehicle seizure. The IVASS maintains a public register for verifying a vehicle's insurance status.

What is the direct compensation system (risarcimento diretto) for RC Auto claims?

Under the direct compensation system (CARD - Convenzione tra Assicuratori per il Risarcimento Diretto), an injured party in a road accident claims from their own insurer rather than from the at-fault party's insurer. The system simplifies and speeds up claims settlement. The IVASS sets annual calibration parameters for inter-insurer reimbursements.

What new law made catastrophe insurance mandatory for Italian businesses?

The 2024 Budget Law (L. 213/2023, art. 1 commas 101-111) and its implementing Decree n. 18/2025 require all Italian-registered businesses to hold insurance covering natural catastrophe risks: earthquake, flood, landslide and inundation. Deadlines were staggered by company size through 2025-2026. Non-compliant firms are excluded from public grants.

What is the Arbitro Assicurativo and how does it work?

The Arbitro Assicurativo is an out-of-court alternative dispute resolution body managed by IVASS. Policyholders, insured parties, beneficiaries and third-party claimants may file a recourse after exhausting the insurer's internal complaints procedure. It provides low-cost binding decisions on insurance disputes as an alternative to court proceedings.

How can a consumer verify that an insurer or intermediary is authorised to operate in Italy?

IVASS maintains public lists on its website (www.ivass.it): the register of authorised Italian and foreign insurers and the Single Register of Intermediaries (RUI). Consumers can also check whether a foreign EEA insurer is passporting into Italy. IVASS publishes alerts about unauthorised operators and counterfeit policies.

What are the main distribution channels for insurance in Italy and which is dominant?

The agent network (rete agenziale) is dominant in non-life, with approximately 72.3% of premiums in 2025. Bancassurance holds around 9.8% of non-life but dominates life insurance, where banks and post offices collect over 55% of multi-branch premiums. Brokers hold about 9.7% officially but an estimated 33.7% when indirect flows are included. Digital direct sales are growing at double-digit rates.

Can EU insurers from other member states sell insurance in Italy without a local licence?

Yes. Under Solvency II, an EEA insurer authorised in its home state may operate in Italy either by opening a branch (freedom of establishment) or on a cross-border services basis (freedom of services), with no new Italian authorisation required. The home supervisor notifies IVASS. The insurer must comply with Italian general-interest rules and appoint a claims representative for motor branches.

What happened to Eurovita and its policyholders?

Eurovita was placed in compulsory administrative liquidation by Ministerial Decree of 27 October 2023 following solvency problems. In early 2024 its portfolio was transferred to Cronos Vita Assicurazioni, a new vehicle backed by the main Italian life insurers. Policyholders' contracts continued under the new entity. IVASS subsequently fined Eurovita EUR 8.59 million for governance and AML violations.