2013年-IMF国际货币组织全球_Italy_Detailed_Assessment_of_IAIS_Insurance_core_Principles_142页_1mb

ITALY: Detailed Assessment of IAIS Insurance Core Principles

Core Content Overview

This document presents a detailed assessment of Italy's compliance with the Insurance Core Principles (ICPs) of the International Association of Insurance Supervisors (IAIS), conducted as part of the 2013 Financial Sector Assessment Program (FSAP). The assessment is based on the regulatory framework, supervisory practices, and market conditions as of January 2013, with a focus on the new Insurance Supervisory Institution (IVASS), which replaced ISVAP in January 2013.

Main Findings

Supervisory Framework

• IVASS has taken significant steps to enhance supervision, including group supervision, risk-based oversight, onsite inspections, and corporate governance improvements.
• IVASS is responsible for supervising all insurance and reinsurance entities, including intermediaries and foreign branches operating in Italy.
• The transition from ISVAP to IVASS is ongoing, and further assessment is recommended within a few years due to the significant structural changes.

Compliance with ICPs

• Observed: Most ICPs are observed or not applicable, with some minor shortcomings.
• Largely Observed: Minor issues exist but do not affect the overall supervisory capacity.
• Partly Observed: Some areas require further development.
• Not Observed: No substantial progress has been made in certain areas.

Operational and Reputational Risks

• IVASS faces high operational and reputational risks due to the limited time available for transition and the complexity of implementing new regulatory requirements.
• The institution must ensure clear responsibilities and operational delegation to maintain continuity and effectiveness.

Market Conditions

• The Italian insurance market is experiencing economic challenges, including a drop in insurer production by over 20% in recent years.
• Distribution channels are dominated by banks and post offices for life insurance, and agents for nonlife insurance.
• The market share of the top 10 insurers is significant, with the top 5 insurers controlling over 63% of the nonlife sector and 62.6% of the life sector.
• The insurance sector's total assets reached EUR 585 billion in 2011, representing about 36% of GDP.

Insurance Products

• The life insurance sector is dominated by traditional products, with over 70% of premiums related to with-profit endowments, whole life, and term life.
• Unit-linked products account for only 17% of production, offering simple guarantees.
• The nonlife insurance sector is dominated by motor insurance, which accounts for 64% of the net premium, with property insurance at 13%.

Financial Performance

• Insurer profitability has been negatively impacted by high claims in the mandatory motor third-party liability (MPTL) and a sluggish economy.
• The average return on equity for insurers was negative at around 6% in the last two years.
• The insurance sector is heavily exposed to sovereign debt, particularly Italian government bonds, which has increased credit default swaps (CDS) due to the volatility of sovereign debt.

Key Recommendations

• Enhance onsite inspections: Improve the quality and focus of onsite inspections to ensure comprehensive market analysis, especially for significant insurers.
• Specialized training for supervisory staff: Provide specialized training to ensure depth and granularity in supervision.
• Implement quality control mechanisms: Establish a task force of experienced supervisors to share best practices, discuss complex issues, and provide quality control.
• Clarify technical reserve methodologies: Ensure consistent and clear communication regarding technical reserve calculations, risk margins, and parameters.
• Strengthen coordination: Improve coordination among different regulatory bodies and with international counterparts to enhance regulatory effectiveness.
• Focus on Solvency II: Prepare for the implementation of Solvency II by enhancing risk management and governance standards.
• Monitor market trends: Utilize sophisticated offsite monitoring tools for smaller insurers to complement on-site inspections and ensure market stability.

Key Information

• Insurance Market Size: Italy's insurance industry ranks seventh globally in terms of premium income, with a market share of 3.48% in 2011.
• Market Concentration: The top 10 insurance groups control over 100% of the Italian market and approximately 134% of the assets.
• Economic Impact: The insurance market has been negatively affected by economic conditions, leading to reduced production and profitability.
• Asset Composition: Fixed income instruments, particularly Italian government bonds, make up the majority of insurance investments.
• Transition Challenges: IVASS, established in 2013, is in a transition phase and needs to address operational and reputational risks.

Conclusion

The assessment highlights that while Italy has made progress in improving its insurance supervision framework, there are still areas that require attention, especially in the context of implementing Solvency II and addressing economic challenges. IVASS is in the early stages of its operational transition and needs to ensure effective coordination, quality control, and specialized oversight to maintain market stability and regulatory effectiveness.