Life Insurance in Household Portfolios in Italy

This thesis explores the role of life insurance policies within Italian household financial portfolios, combining a legal, financial, and empirical approach. The first part offers a historical and regulatory overview, tracing the origins of life insurance in Italy from early risk-sharing contracts in Ancient Rome to the emergence of modern policies regulated under the Italian Private Insurance Code (CAP) and European Solvency II Directive. Particular attention is given to the role of IVASS as the national supervisory authority and to the governance, solvency, and risk management standards imposed on insurance undertakings. The second chapter investigates the structural and fiscal features of Class I and Class III life insurance policies. Class I policies, characterized by capital guarantees and separate account management, are discussed with Class III (unit- and index-linked) contracts, which offer higher risk-return profiles linked to financial market performance. The analysis examines their regulatory framework, investment logic, tax treatment, and role in portfolio diversification and wealth protection. The final chapter presents an empirical analysis based on microdata from the Bank of Italy’s Survey on Household Income and Wealth (SHIW). Using descriptive statistics and a logistic regression model, the study identifies the main socio-economic and demographic determinants influencing life insurance ownership. Variables such as income level, employment status, homeownership, financial participation, and geographic area are found to significantly affect the probability of holding a policy. The results highlight the importance of financial participation and knowledge and institutional trust, revealing persistent regional and social inequalities in access to private welfare instruments. This multidisciplinary investigation provides insights into how life insurance policies function as both investment and protection tools in the Italian context, offering policy implications to improve market transparency and financial inclusion.