Insurance arbitrator; a novelty in the relationship with insurance companies.

We all have insurance policies in place, some of which are compulsory by law, while others are the result of our own decision to avail ourselves of insurance, in order to cope with possible damaging events to our persons and belongings.Sometimes, raise your hand if you have never experienced this, insurance companies take a little long or make an unsatisfactory compensation proposal for the policyholder, reimbursing only part of the damage. In such cases, one has to turn to a lawyer, to read the insurance contract and find out whether, how and where one can go to court to obtain justice.

 But as of today there is another possibility to resolve these disputes: the Insurance Arbitrator, an out-of-court settlement tool for disputes between customers and insurance companies and insurance intermediaries over insurance contracts as provided for in Article 141.7 of the Consumer Code and Article 187.1 of the Insurance Code. It is an out-of-court settlement body, like those already existing for the banking and financial sectors (ABF) for financial disputes (ACF).

The reference regulation is European Directive No. 11 of 2013, applied in Italy by Ministerial Decree 215 of 6.11.2024 The Insurance Arbitrator is located at the IVASS. Italian companies and intermediaries become members without the need for special notices. The body is composed of panels in Italy consisting of competent individuals with a high level of independence from insurance companies. The procedure for activating it is simple and online, but the submission of the client's appeal to the arbitrator, under penalty of inadmissibility, must be preceded by the submission of a complaint to the insurance company.

Beware that the Insurance Arbitrator does not make decisions that can then be compulsorily enforced. However, the insurance company is bound to the arbitrator's decision within 30 days. Failing this, the insurance company's default is made known to everyone, with publication in a special section of the Insurance Arbitrator's website, for a period of five years.

The policyholder will therefore always be free to take legal action even in the event of a decision that is not satisfactory to its interests. It is to be expected, however, that the insurance arbitrator's decisions will be respected by insurance companies, both as a matter of image and to avoid litigation, and that this will help to have a better relationship with insurance companies.

last update March 2025