On the 29th of September 2014 AEC Wholesale Group transformed the Adjusting & Claims Service, a company handling the management of claims in outsourcing, in the first independent consortium devoted to the “full outsourcing”of the Italian insurance sector.

Resorting to outsourcing to obtain some necessary and functional services (such as administrative services, accounting, management and staff training, claims, computer systems, legal and corporate advice, Compliance and in general services that are supporting, accessory and complementary services to the main activity), is common to the large companies such as Industrials, Bankers and Insurers for the development of those economies of scale, which are essential for the survival in an increasing competitive market.

The tax law, introduced in the 2008 Budget, states tax exemption on Vat (currently at 22%) for the services relating to associates or to partners of consortiums, including consortiums made up between partners for whom, in the last 3 years, the Vat exemption was not more than 10%, as it is for Insurance and Reinsurance Companies and their Intermediaries.

Adjusting & Claims Service Scrl, that is A&C Service, was created in July 2011 and is part of AEC Group. After 2 years of activity, it has reached the Break-even point and is autonomous both in the organization and in the office premises. The 2013 balance sheet shows a profit and 30% of its turnover is represented by “non-associates” business (mainly Insurances Companies and Public Entities).

Since A&C Service is a limited liability consortium, it acts as an independent agent in the insurance market (meaning it is not controlled by any insurance group), offering a total no Vat “Full outsourcing” service to Companies and to independent insurance and reinsurance intermediaries.

This is even more up to date at present, as, with the “Jobs Act”, the current contract term (“co.co.pro”), have become illegal. This is not the case for a Consortium Company which allow an easy staff management due to mobility regulations and the relocation of employees between consortium and partners.

Furthermore, A&C Service Scrl, as a limited liability consortium , is a non-profit company, and thus:

To be exempt from VAT, the compensations that the consortiums or the partners give for the services must be low respect to the costs associated with the services provided, so the consortium can’t apply any fee increase to the service provided.

Incomes cannot be given to the partners, but they must be used as services for the consortia.

A&C Service, as a consortium constituted as stated by the art.2615-ter of the Civil Code, is a profit company (s.r.l.) but it is constituted to pursue the other consortiums targets: the aim is not to achieve a profit to be shared between the consortia, but to allow them to achieve a mutual benefit.

In conclusion, having as a “mission” the one to provide outsourcing services as well as high added value services (company welfare, claims management, etc…), A&C Service Scrl makes available to all Reinsurance and Insurance Companies, independent Intermediaries and their clients, a wide range of services; only being limited by the fact that it supports, is an accessory and is complementary in respect of the main activity of the consortium.

A&C Service Scrl provides services for all Professionals, Companies and Public Entities; the subscription to the Consortium (whose advantage is the VAT exemption) is open exclusively to Insurances Companies, Intermediaries and in general for those who, as stated in art.10 of D.P.R. 633/72 cd T.U. VAT , in the last 3 years, have not had a VAT exemption of more than 10%.

For further information you can contact AEC Wholesale Group Sales Executive, Simona Biondi (+39 02.87.387.953 – biondi@aecunderwriting.it) and the Sales Managers available at these phone numbers: +39 02.87.387.951 or +39 06.85.332.407 or at the following email address : aecservice@pec.gruppoaec.it.