On March 2009 the Italian Insurance Regulator (ISVAP, at the time) issued Regulation n. 29/2009, dealing with, inter alia, insurability of certain risks (the "Regulation").
According to Art. 4, paragraph 2 of such Regulation "...In any case the insurance undertaking may not provide cover guaranteeing the reimbursement of contingent liabilities or losses on assets due to assessments resulting from undertaking's extraordinary operations" ("In ogni caso non sono rilasciabili le coperture destinate a garantire il rimborso di sopravvenienze passive o minusvalenze su elementi patrimoniali derivanti da valutazioni conseguenti ad operazioni straordinarie di impresa").
Following enquiries from the market in relation to the possible impact of such provision on W&I policies, on 25 July 2019 the Italian Regulator (IVASS) issued a FAQ statement aimed at answering the question of whether "Art. 4, paragraph 2 of Regulation 29/2009 does apply to policies covering risks connected to non-conformity or breach of representation and warranties in the context of extraordinary corporate transactions (so called W&I Policies)".
IVASS confirmed the general application of...