The market will have six months to overcome the (many) problems associated with the so-called PPI (Payment Protection Insurance), the insurance policies linked to mortgages and bank loans. The lack of transparency in these products is now a long-standing issue, but now Bankitalia and IVASS have decided to move jointly.
According to MF, the two authorities have sent a letter to banks, insurers and insurance intermediaries, asking them to take corrective measures to improve the products in question. The goal is to increase customer protection.
The indications, the result of the comparison between the authorities and the market on 5 June, will have to be discussed with the company's administrative bodies. The companies will therefore have the obligation to develop a plan to be submitted to the Bank of Italy and to IVASS within three months and to be implemented in the following three months.
