In a landmark move for the Italian insurance sector, energy giant Enel has confirmed the establishment of its first onshore captive insurance company, set to commence operations on January 1, 2024.

This strategic decision involves merging Enel Insurance NV, currently based in the Netherlands, into this innovative Italian reinsurance captive.

This pivotal step reflects a growing confidence among major Italian corporations in the evolving regulatory landscape, particularly with the anticipated reforms of Solvency II.

The creation of this captive, which will cover property damage, business interruption, and casualty, aligns with the wider European trend of onshore captive formation, as seen in France and the UK.

Despite no specific regulatory adjustments in Italy yet, industry experts anticipate that the Solvency II reform will foster a more conducive environment for captive insurance formation.

The European Insurance and Occupational Pensions Authority (Eiopa) has expressed a desire for national insurance supervisors to apply proportionality principles more liberally to captives, potentially easing capital and reporting burdens.

This development is not just about regulatory compliance; it’s a strategic move for efficiency and optimal risk management.

As other European nations, like the UK and Spain, show increasing interest in facilitating captive insurance, the industry is poised for a transformative shift, offering corporations more control and flexibility over their risk management strategies.