ROME (Reuters) - Italy plans to create a life insurance guarantee fund to protect policy holders and avoid cases similar to Eurovita, a draft of its 2024 budget seen by Reuters showed on Tuesday.
Eurovita this year became the first Italian insurance company to be placed under special administration, after running intro trouble due to higher interest rates.
Italy's top insurers and Germany's Allianz (ETR:ALVG) in June agreed a multi-billion euro rescue deal for Eurovita backed by the government and regulators and involving several banks.
Under the draft, still subject to changes, Italian insurers must participate in the new fund when their annual income from life insurance premiums is 50 million euros ($53 million) or more.
The fund will have a financial endowment of at least 0.5% of the amount of life insurance reserves held by companies, to be reached between 2033 and 2035.
Insurance companies would pay contributions to the fund annually, the draft said.
A separate measure being discussed requires companies with registered offices in Italy and foreign companies operating in Italy to sign off on insurance by the end of next year to cover damage caused by natural disasters.
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