The Italian insurance sector has introduced a new tool for alternative dispute resolution: the Insurance Arbitrator.
This figure, established by Italian Ministerial Decree No. 215 of November 6, 2024, published in the Official Gazette No. 6 on January 9, 2025, is instituted within IVASS (Institute for the Supervision of Insurance), representing an innovative, faster, and more cost-effective mechanism that allows consumers to obtain an impartial decision without resorting to traditional and more burdensome judicial proceedings.
Scope and Operation
The Insurance Arbitrator is tasked with resolving disputes between consumers and insurance companies arising from insurance contracts, ensuring a quicker and more economical procedure compared to traditional judicial routes. It is competent to decide on:
- issues related to the rights and contractual obligations between the parties;
- violations of conduct rules in insurance distribution.
Disputes concerning the Guarantee Fund for Road Accident Victims and other cases falling under the competence of CONSAP are excluded from the Arbitrator’s jurisdiction.
Value Limits of Disputes
The Insurance Arbitrator can intervene within the following value limits:
- Life Contracts:
- Up to €300,000 for life contracts in Branch I (benefits due only in case of death);
- Up to €150,000 for other Branch I contracts and contracts of other life branches.
- Non-Life Insurance:
- Up to €25,000 for non-life insurance;
- Up to €2,500 for motor liability compensation claims requested by third-party victims.
Exclusions from Competence
Disputes concerning claims managed by the Guarantee Fund for Hunting and Road Victims, as well as those falling under the competence of CONSAP, are excluded.
Procedure and Timelines
To file an appeal, the consumer must have previously sent a complaint to the insurance company and waited for a response within 45 days. The appeal to the Arbitrator must be filed within 12 months from the date of the complaint submission. The Arbitrator’s decision is issued within 90 days from the formation of the file, with a possible extension of up to 90 days in case of particularly complex disputes.
Effectiveness of Decisions
The Arbitrator’s decisions are not binding, but non-compliance is made public for five years, creating a reputational incentive for companies to adhere to the rulings.
Conclusions
The introduction of the Insurance Arbitrator represents a significant step for consumer protection in the Italian insurance sector, offering a more accessible and efficient path to dispute resolution.