The Insurance Ombudsman: An Alternative Dispute Resolution Mechanism for Insurance Matters

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Ministerial Decree No. 215 of 6 November 2024, issued by the Italian Ministry for Business and Made in Italy, introduced the Insurance Ombudsman (“Arbitro Assicurativo”)—a new out-of-court dispute resolution mechanism established within IVASS (the Italian Insurance Supervisory Authority).

This collegial body offers an alternative to traditional mediation and assisted negotiation procedures, aiming to provide a streamlined, low-cost route to resolve insurance-related disputes. Scope of jurisdictionThe Ombudsman has jurisdiction over all disputes arising from insurance contracts, including matters relating to the recognition of rights (including compensation), obligations, and entitlements linked to insurance services and coverage.Notably, cases concerning claims handled by the Road Victims Guarantee Fund or the Hunting Accident Guarantee Fund, as well as those falling within the remit of CONSAP (the Italian Public Insurance Services Concessionaire), are expressly excluded. How the procedure worksThe arbitration procedure may be initiated directly by the policyholder or claimant, via an online platform, without the need for legal representation and with minimal cost.Importantly, the process is integrated within the complaints-handling framework: submitting a complaint to the insurance company or intermediary is a mandatory prerequisite.Only in the event of no response or an unsatisfactory reply, can the claimant escalate the matter to the Insurance Ombudsman. Once the complaint is admitted, the Ombudsman must issue a decision within 90 days, extendable by a further 90 days in particularly complex cases. Legal weight and reputational implicationsAlthough decisions issued by the Insurance Ombudsman are not legally binding, non-compliance by supervised entities will result in reputational consequences: IVASS will publish the name of the non-compliant company on its institutional website for a period of five years.Operational StatusDespite the legislative framework now being in place, the Insurance Ombudsman is not yet operational. IVASS is currently expected to issue the relevant technical and procedural rules via a dedicated measure, which will be published on its official website. Further reading:·       Ministerial Decree No. 215/2024, Ministry for Business and Made in Italy·       Articles 141 ff. of the Italian Consumer Code·       Articles 187 ff. of the Italian Insurance Code