81 Italian and European insurance terms: surety bonds, reinsurance, claims, regulation, e-signature, distribution, credit insurance, technical data. Concise definitions, precise regulatory references.
Association for Cooperative Operations Research and Development: US non-profit publishing interoperability standards for global insurance. Most-used: ACORD XML for data exchange, ACORD AL3 for the Lloyd's market, ACORD BDX for bordereaux. Interoperability reference for the specialty/Lloyd's market.
Italian Agency for Agricultural Payments, the public body managing EU Common Agricultural Policy (CAP) contributions for Italy. Requires surety bonds to guarantee contribution advances, agricultural insurance premiums, storage regimes. Sector with specific rules per CAP measure and agricultural campaign.
Decade-long AgID-compliant preservation of electronic documents per AgID Guidelines on formation, management and preservation (2020). Entrusted to accredited Preservation Providers (Aruba, InfoCert, Postel, Namirial). For insurance: policies, certificates, claims, CAD communications must be preserved this way.
Anti-Money Laundering and Know Your Customer: regulatory framework (D.Lgs. 231/2007 in Italy, EU AMLD) imposing customer identification, risk profiling, sanctions/PEP screening, operational monitoring, suspicious-transaction reporting to UIF. For insurance applies primarily to life and investment lines; less intense on non-life.
Italian Anti-Corruption Authority, the independent authority overseeing public contracts. Manages the CIG system, the National Public Contracts Database (BDNCP), validates economic-operator registration. Its API is queried by PAS for tender verification at bond issuance.
Italian Insurers Association: federation of Italian insurance companies. Manages strategic databases for the motor TPL sector: claims database, bonus-malus classes, SIC Clearing House for inter-insurer flows. Technical and tariff reference standards.
Central motor TPL claims database managed by ANIA on behalf of the Italian Ministry. Insurers feed and query BCM at quotation time for: applicant's claims history, bonus-malus classes, anti-fraud. Mandatory web-service integration for insurers operating in the Italian motor TPL line.
ANIA Central Indemnity System: clearing house for settling financial flows between insurers under CARD/CID (motor TPL direct settlement). Insurers periodically clear reciprocal reimbursements through SIC, simplifying inter-insurer payments.
Italian Sector Classification (ISTAT NACE-based), 2007 version. 6-digit codes identifying a firm's sector: criterion for insurance-risk profiling (professional liability tariffs, commercial multi-risk, credit insurance). ATECO 2025 update is being rolled out.
Lloyd's online system for managing coverholder and binding-authority approvals. Application workflow, due diligence, assessment of operational and compliance standards. Integrated with BDX and DA (Delegated Authority) systems for continuous monitoring of delegated activities.
Italian pre-litigation expert assessment under art. 696-bis c.p.c.: judicial procedure to obtain technical expertise early for damage disputes (typically medical). Mandatory in healthcare PI litigation (L. 24/2017) before regular trial. Typical 6-18 months duration.
Insurance distribution channel through banks and credit institutions (RUI section D). Typically offers life classes (I, III, V) connected to financial products (mortgages, current accounts, investments) and some simple non-life lines. High concentration on few banking groups in Italy.
Surety bond attached to a public-tender offer, guarantees the contracting authority against failure of the awarded bidder to sign the contract. Typical duration 6-12 months, amount % of tender base value. Regulated by D.Lgs. 36/2023 (Italian Public Contracts Code).
Delegated-underwriting contract between a Lloyd's syndicate and a coverholder. Defines: delegated risk classes, underwriting limits, territory, premium, commission, BDX reporting. Typical annual period, renewable. Base contractual document for coverholder operations.
Periodic (monthly or quarterly) statement transmitted by the coverholder/cedent to the reinsurer detailing policies issued (premium bordereau) or claims incurred (claims bordereau) under a binder. ACORD standard for Lloyd's. Critical component of the coverholder-Lloyd's relationship.
Italian Digital Administration Code (D.Lgs. 82/2005), regulating electronic documents, e-signature, digital identity (SPID/CIE), AgID-compliant preservation. Key articles: art. 20 (legal validity of electronic document), art. 21 (signature effectiveness), arts. 43-44 (decade-long preservation via AgID-accredited preserver).
Other ETSI advanced-signature formats: CAdES (CMS Advanced, for binary files, .p7m), XAdES (XML Advanced, for XML files). Used in specific scenarios like Italian e-invoicing XML (FatturaPA), B2B feeds, integrations with non-PDF systems. Less common than PAdES in daily insurance work.
CARD = Italian inter-insurer convention for direct settlement; CID = amicable accident report. Italian motor TPL direct-settlement system: the damaged party is indemnified by their own insurer, which then recovers from the responsible party's insurer via the ANIA Clearing House.
XL treaty specific to catastrophic events (earthquake, flood, storm) that can hit many risks simultaneously. Event-based trigger: activates when a single event causes aggregate claims above retention. PML (Probable Maximum Loss) measurement as key parameter.
Fee that the reinsurer pays to the cedent in proportional treaties (as % of ceded premiums) to remunerate acquisition costs (commissions paid to the network) and portfolio-management costs borne by the cedent. Typically 25-35% in quota share. Central treaty-negotiation parameter.
Transfer of risk (and corresponding premium) from the ceding insurer to the reinsurer. The term also indicates the ceded amount: 'ceded premiums', 'ceded claims'. Cession percentages vary based on the reinsurance programme and treaty type.
Italian Electronic Identity Card, compliant with eIDAS 'high' level. Contains RFID chip with authentication and signing certificate. Usable for PA-service access (SPID alternative) and qualified electronic signature (FEQ) with PIN. CIE app for mobile authentication.
Unique code assigned by Italian Anti-Corruption Authority (ANAC) to every public-tender procedure in Italy. Mandatory in surety bonds attached to tenders: identifies the tender, links the bond to a specific contract, must appear in the certificate text. Enables financial-flow traceability under L. 136/2010.
Insurance-cover trigger based on the claim-reporting date: the policy covers claims reported during the policy term, including for prior events if a retroactive date is set. Almost universal in Italian professional liability. Combined with retroactive and run-off extensions.
Loss ratio + expense ratio: sum of claims ratio and operating costs (acquisition + administration) over premiums. Combined ratio < 100% = the line is technically profitable before financial result. Main indicator of technical efficiency of a portfolio or insurer.
Intermediary authorised by Lloyd's to underwrite risks and/or issue policy documents on behalf of Lloyd's syndicates under a binding authority. Must pass the Lloyd's approval process (Atlas) and maintain operational and compliance standards. Key category in the Italian Lloyd's market.
In credit insurance, maximum amount covered by the policy on a single commercial debtor (buyer) of the insured. The insurer's analyst decides the limit based on credit rating, financials, sector exposure, payment history. Periodic review and event-driven block/unblock management.
Surety bond in favour of the Italian Customs and Monopolies Agency (ADM) to guarantee customs duties under suspensive regimes: customs warehousing, EU transit, suspended excise duties, import VAT. Standard ADM wording, typically annual renewable.
In credit insurance, event triggering cover: non-payment by the buyer of a covered invoice within the contractual term (typically 30-90 days past due). Opens the claim and the indemnification process to the insured + subrogated recovery against the debtor.
EU Regulation 2022/2554 on digital operational resilience for the financial sector, applicable from 17 January 2025. Imposes on banks, insurers and critical ICT providers: ICT risk management, incident reporting to authorities (ENISA/EBA/EIOPA), resilience testing, third-party due diligence.
EU Regulation 910/2014 on digital identity and trust services (e-signatures, seals, timestamp, preservation). Establishes 3 signature levels (FES, FEA, FEQ) with FEQ = handwritten signature equivalence (art. 25). Updated by eIDAS 2 (Reg. EU 2024/1183) introducing the European Wallet (EUDI Wallet).
Non-proportional reinsurance treaty where the reinsurer pays the loss portion exceeding the cedent's retention up to a limit. Example: 'EUR 5M xs EUR 1M' means 5M of cover above 1M of retention. Typical for loss-peak protection.
Intermediate eIDAS e-signature level (art. 26): uniquely linked to the signer, controlled by them, detects subsequent changes. Example: graphometric signature on tablet + SPID/CIE authentication. Equivalent to written form for most civil acts, excluding certain solemn forms (real estate).
Maximum eIDAS e-signature level (arts. 25-29): FEA produced with qualified device (SSCD) and qualified certificate issued by a Qualified Trust Service Provider. Equivalent to handwritten signature by law (art. 25). Used for bonds to public administration, binding authorities, high-probative-risk acts.
Minimum eIDAS e-signature level (art. 3.10): any electronic data attached to a document to sign it. Example: SMS/email OTP, checkbox click, handwritten-signature scan. Low probative value, assessed by the judge. Used for low-importance acts (cookie consents, informational declarations).
Bond-call mode where the beneficiary obtains immediate payment from the insurer without having to first attempt enforcement against the guaranteed principal. The insurer pays then exercises regress. Most Italian surety bonds are first-demand.
Scheme where an insurer licensed in a country (fronter) issues local policies on behalf of a reinsurer unlicensed in that country, ceding 100% (or near) of the risk in reinsurance. Common for multinational global programmes and Lloyd's specialty. Specific IVASS compliance.
EU Regulation 2016/679 on personal data protection, applicable since May 2018. For insurance: special-data processing (health for life/health lines), tariff profiling, mandatory DPO, DPIA for high-risk processing, data-breach handling (72h notification to supervisory authority).
Incurred But Not Reported: technical reserve for claims already occurred but not yet reported to the insurer. Calculated with actuarial methods (chain-ladder, Bornhuetter-Ferguson) on historical development patterns. Fundamental Solvency II claims-reserve component for long-tail lines (professional liability, claims-made).
London-market standard clauses for cargo-in-transit insurance, published by the Lloyd's Market Association. ICC (A) = all-risks (maximum cover), ICC (B) = named perils intermediate, ICC (C) = named perils minimum. Standard exclusions: inherent vice, delay, war, strikes (covered separately).
Insurance Distribution Directive 2016/97/EU, transposed in Italy via D.Lgs. 68/2018. Regulates insurance distribution: intermediaries register (RUI), information and advice duties, IPID, POG, commission transparency, conflict-of-interest management, continuing professional training.
London-market standard clauses for marine hull insurance. Define covers, exclusions, perils of the sea, navigation warranty (permitted navigation zones). Most-used versions: IHC 1983, ITC Hulls 1995, IHC 2003. Typical for marine portfolios.
Insurance intermediary registered in RUI section A acting in the name and on behalf of one or more insurers (agency mandate). Distinguished between single-mandate agent (one insurer only) and multi-mandate. Remunerated by commission on collected premiums. Typically with territorial or line exclusivity.
Insurance intermediary registered in RUI section B acting in the name and on behalf of the client (brokerage mandate). Independent from insurers, offers risk analysis, market comparison, claims management. Remunerated by commission (from the issuing insurer) or by fee (from the client).
Optical character recognition specialised for insurance-sector documents: pay slips, vehicle registrations, tax codes, medical certificates, prior policies. Combination of base OCR + ML models trained on specific templates. Reduces manual data entry in customer onboarding and claims handling.
Standardised pre-contractual information document for non-life insurance policies (IDD art. 20), A4 format maximum 2 pages, fixed structure. Must be delivered to the client before subscription, in paper or electronic form. Automatic generation from parameterised templates in PAS.
International standard for information security management systems (ISMS). 2022/2023 version with 93 controls (reduced from 114 in 2013) organised in 4 themes: organisational, people, physical, technological. Certification required by many financial/insurance vendor procurement specs.
Italian insurance supervisor (successor of ISVAP since 2013). Supervises insurers, intermediaries (RUI register), distribution (Reg. 40/2018), governance (Reg. 38/2018), AML (Reg. 44/2019), transparency (Reg. 41/2018).
Italian temporary business grouping that jointly participates in a public tender, with one lead (mandataria) and one or more members (mandanti). Joint-venture bonds handle participation quotas and joint liability among the firms, with premium split.
Surety bond issued under art. 38-bis D.P.R. 633/1972 (amended by L. 210/2008) in favour of the Italian Tax Agency to guarantee VAT-refund anticipation to the taxpayer. Standardised wording, duration tied to the audit outcome (typically 3 years).
London insurance market made of syndicates funded by members (names + corporate capital) that assume risks underwritten by underwriters. Not a company but a marketplace regulated by Lloyd's Corporation, supervised by PRA/FCA. Global reference for specialty and reinsurance.
Underwriting unit at Lloyd's made of members sharing the share of risks taken by the underwriter. Identified by number (e.g. 'Syndicate 33'). Managed by a managing agent. Annual underwriting capacity expressed in £ (e.g. £200M stamp capacity). Risks are split by share among syndicates.
Ratio between claims (paid + reserved) and premiums (earned or written) of an insurance portfolio, expressed in %. Key technical-profitability indicator: loss ratio < 70% typically healthy in standard non-life lines. Differentiated between gross loss ratio and net loss ratio (net of reinsurance).
Cover trigger based on the damage-event date: the policy covers claims whose triggering event occurs during the policy term, regardless of when the claim is reported. Typical of traditional P&C lines (motor TPL, home, accident).
Specialised intermediary with wide delegation for underwriting and operational management (policy issuance, light claims handling) on behalf of an insurer. 'Enterprise' version of the agent with dedicated underwriting teams. Common in specialty lines (cyber, professional liability, M&A) and in Lloyd's-market relationships.
Lloyd's contractual documentation standard for policies underwritten in the market. Replaces old free-form slips with standardised sections: risk, covers, clauses, syndicate signing. Critical for Italian coverholders that must issue local certificates consistent with the London MRC.
EU Directive 2022/2555 on network and information systems security (transposition October 2024). Extends original NIS scope to more sectors, including financial under 'essential entities'. For insurance applies in coordination with DORA: NIS2 + DORA = complete financial cybersecurity framework.
Shipowners' mutual (Protection & Indemnity Club) insuring shipowners' third-party liability (passengers, crew, environment, cargo): a market distinct from Lloyd's syndicates and traditional insurers. Major Clubs: Gard, North, Britannia, UK P&I, Skuld, Steamship.
PDF Advanced Electronic Signature (ETSI EN 319 142): e-signature standard for PDF documents. Incremental mode allows multiple sequential signatures without invalidating previous ones. Verifiable with Adobe Reader, EU DSS, preservation-provider software. Default format for Italian insurance policies and certificates.
Core IT system for managing the lifecycle of insurance policies: issuance, management, renewals, claims, reinsurance, technical accounting. NewPicass 14.Net is a vertical surety PAS. Software category distinct from CRM (customer relationship) and rating engine (premium calculation).
Surety bond issued after award of a public contract, guarantees correct performance of contractual obligations. Amount % of contract value, can be progressively reduced during execution against approved work-progress instalments (SAL).
IDD regulatory framework (art. 25, EIOPA Guidelines) for insurance-product governance. Requires insurers and distributors to: define target market, test products pre-launch, continuous performance monitoring, periodic reviews. Integrated into product-management processes of modern PAS.
Traditional suretyship mode (Italian Civil Code art. 1944) where the beneficiary must first attempt enforcement against the guaranteed principal before claiming from the surety. More protective for the insurer, rarely used in modern surety (replaced by first-demand).
Payment Services Directive 2 (EU Directive 2015/2366), regulates electronic payments in the EU. Imposes Strong Customer Authentication (SCA), open banking via API for PISP/AISP, refund management. For insurance relevant to premium payments (SEPA Direct Debit, instant payment) and integration with aggregator Insurtechs.
Proportional reinsurance treaty where the cedent transfers a fixed % (e.g. 40%) of every risk in the portfolio to the reinsurer, which receives the same % of premiums and pays the same % of claims. Reinsurer pays a ceding commission to the cedent.
Right of the insurer that has paid a bond call to recover the paid amount from the guaranteed principal. Implemented via demand letter, possible repayment plan, judicial litigation. Regress tracking (recoveries) is a key claims-module function in surety PAS.
In credit insurance, post-indemnity process where the insurer steps into the insured's rights (subrogation) for judicial or out-of-court recovery of the amount from the original debtor. Recovery tracking is a key line-profitability KPI (net loss ratio includes recovery rate).
In claims-made policies, the period before policy inception for which triggering events are still covered. Expressed in years (e.g. 5 or 10) or as unlimited retroactive. Provides cover continuity when switching insurer while keeping the same retro date.
Reinsurance of a reinsurer: the original reinsurer (second-tier cedent) in turn cedes a share of accepted risks to a retrocessionnaire. Allows reinsurer-level exposure and capacity management. Long retro chains are typical in the Lloyd's market.
Register kept by IVASS of Italian insurance intermediaries, divided into sections: A (agents), B (brokers), D (banks, SIMs, Italian Post), E (collaborators). Registration is mandatory to operate in insurance distribution in Italy. API-based registration verification is a typical PAS feature for producer onboarding.
Extension of claims-made cover that handles claims reported after professional activity ceases (retirement, death, removal from the roll). Mandatory 10 years for Italian doctors (L. 24/2017). One-off or instalment premium; typically non-cancellable by the insurer.
Italian Export Credit Agency, part of Cassa Depositi e Prestiti group. Offers insurance guarantees on export receivables, country political risk, foreign investments, post-Covid domestic guarantees. Reference for Italian firms' export credit insurance.
ISO 20022 standards for SEPA payments: pain.001.001.03 = customer credit transfer initiation (outbound transfers), camt.053.001.02 = bank statement (account reporting). Insurance PAS use them for claims and network-commission payments (pain.001) and for premium-collection reconciliation (camt.053).
Risk summary document submitted to Lloyd's underwriters for subscription. Historically free-form paper, today replaced or accompanied by the structured MRC. The 'slip leader' is the first underwriter that sets premium and terms for other followers.
Directive 2009/138/EC setting the prudential framework for EU insurers: risk-based capital requirements (SCR, MCR), governance (system of governance, ORSA), reporting (QRT, RSR, SFCR). Pillar 1: capital; Pillar 2: governance; Pillar 3: transparency. EIOPA issues technical standards and guidelines.
Italian Public Digital Identity System: digital identity for access to PA and private services. 9 AgID-accredited Identity Providers. 3 security levels: L1 (user/pwd), L2 (+ OTP), L3 (smart card or equivalent). For insurance: customer identification in remote onboarding, authentication for FEA.
Contract by which one party (surety) guarantees to a creditor the performance of another party's obligation (principal). Regulated by Italian Civil Code arts. 1936-1957. In insurance, suretyship is provided by companies authorised in class 15 (caution) under IVASS supervision.
Proportional reinsurance treaty where the cedent retains a fixed share (line) on every risk and cedes the surplus up to a multiple of the retention. Provides capacity for risks exceeding retention; cession ratio varies by risk.
Party delegated by the insurer or Lloyd's syndicates to operationally handle claims (claims TPA) or underwriting (UA - Underwriting Agent). Different from coverholder: TPA handles post-issuance/post-claim, coverholder issues. Common in specialty and marine markets.
Treaty: automatic agreement covering all risks of a defined portfolio under preset rules. Facultative: single-risk cession, assessed and accepted case by case. Treaties handle flat business; facultative covers large or atypical risks.
Time Stamping Authority (RFC 3161): issues cryptographic attestations certifying the existence of a document at a precise date and time. Required for certain date opposable to third parties. In Italy: AgID-qualified TSAs like Actalis, InfoCert, Aruba PEC. Integrated into PAS for bonds attached to public tenders.
