The Role of the Insurance Agent and the MGA
An insurance agent is an insurance intermediary who acts in the name or on behalf of one or more insurance or reinsurance companies, based on specific agency mandates, as established by Article 109, paragraph 2, letter a) of the Private Insurance Code.
The agent is registered in Section A of the Register of Insurance Intermediaries (RUI) maintained by IVASS and operates in compliance with the provisions of the Private Insurance Code and IVASS regulations.
A Managing General Agent (MGA) is a particular type of insurance agent with broad delegated powers from the insurance companies it represents, including:
- The authority to underwrite policies on behalf of the represented companies
- Claims management within specified limits
- Underwriting activities, i.e., the assessment and selection of risks
- Definition of contractual terms within the guidelines established by the companies
Assigeco Underwriting operates as an MGA, providing specialist insurance solutions and bespoke coverage.
Insurance intermediation is governed by Title IX of the Private Insurance Code (Legislative Decree 209/2005) and by IVASS regulations, in particular:
- IVASS Regulation No. 40/2018 on the Register of Insurance Intermediaries
- IVASS Regulation No. 45/2020 on the rules of conduct for intermediaries
Insurance intermediaries, pursuant to Article 119-bis of the Private Insurance Code, must::
- Operate with fairness, honesty, professionalism, integrity, and transparency in the best interests of policyholders
- Obtain from policyholders the information necessary to identify their insurance needs
- Provide policyholders with complete, accurate, and non-misleading information
- Avoid conflicts of interest or, if unavoidable, manage them so as not to prejudice policyholders
Before the contract is concluded, the intermediary must provide the policyholder, pursuant to Article 120 of the Private Insurance Code, with:
- Name, business name, address, and intermediary status
- The section of the RUI in which they are registered
- Whether they act in the name and on behalf of one or more insurance companies (as in the case of agents)
- Complaint procedures and out-of-court dispute resolution methods
Policyholders have several instruments for protection:
- Filing a complaint with the intermediary or the insurance company
- Referring disputes with intermediaries or companies to IVASS
- Referring certain types of disputes to the Financial Disputes Arbitrator (ACF)
- Pursuing ordinary judicial action
IVASS can impose disciplinary sanctions on intermediaries who violate the rules of conduct, including:
- Warning
- Reprimand
- Suspension from activity for up to six months
- Removal from the Register
Administrative fines may also be imposed for more serious violations.
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