Italy is the 8th largest economy is the world and has a strong social and political sector that makes the insurance industry one of the popular financial sector in Italy. But recent changes in the economic and political landscape affects the insurance industry so that they need to take charge of the situation and grow accordingly. Insurance sector plays an important role in the Italy’s financial market due to its support for life and health care insurance.
The Italian Insurance market is still at its developing stage as there is poor penetration of insurance policies and large part of the market is still untapped. Life insurance and motor insurance are the main segment of the insurance market. There is a need for innovation in the insurance segment to develop policies that meets the exact needs of individuals. Insurance market has a low penetration in Italy and in recent years has shown growth in this field.
In Italy government maintains control over the insurance industry and insurer companies are authorized to do business. Automobile third party liability insurance is compulsory in Italy. The ISVAP ( Instituto per Viglanza sulle Assicurazioni Private di Interesse Collettivo ) is the regulatory body of the insurance business in Italy.
In 2006 Bersani Law was introduced to liberalize the insurance market and increase the competitiveness. This will give freedom to the insurance agents. Italy insurance is an agent dominated market. Agents dominate the distribution network and after liberalization they can now represent many insurance companies and sell their insurance policies. There is a lot of opportunities of growth in this market .
Citizen of Italy can make avail the public health insurance and private health insurance which gives an extra protection after the public health insurance. Each individual in Italy gets a social security number and a heath card through which they can avail medical treatment in subsidized or free of cost. In Italy the National health Insurance is managed by the National Health Service. If you are a foreign individual you can avail the health insurance through various private players as you are not protected by government’s social security health insurance. The life insurance market in Italy is very profitable and Italians have one of the longest life expectancy.
Italy is one of the amazing place to travel and spend a vacation. It has breathtaking architecture spread all over the country. So It is advisable to take a travel insurance when you go to Italy. The travel insurance will provide you extra protection for your belongings from theft or loss and your health from medical treatment.
• Vehicle Insurance is mandatory in Italy so vehicle owners need to have a third party liability insurance.
• Banks are one of the most important distribution channel providing insurance policies to the users. They have an extensive branching system spread over the country that makes it easier to provide insurance solutions.
• There is also the need to spread the awareness of insurance products in the Italian market.
• Assicurazioni Generali is the largest insurance company in Italy. Many foreign insurance companies also operate in Italy , they are AIG Europe, Axa Assicurazioni, Cigna Life Insurance, Chubb Insurance and Allstate.
Last Updated on : 26th August 2013