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Italian catastrophe insurance uptake stalls, leaving small firms and high‑risk regions with steep premiums

Executive summary: Insurers report that catastrophe insurance policies have not gained traction among small businesses and households in Italy, with low mutualization of risk and notably higher premiums for residents of Calabria, Molise, Umbria and Emilia‑Romagna. The limited coverage exposes property owners to uninsured losses from natural disasters, potentially increasing fiscal strain on individuals and public disaster‑relief funds.

Who is involved: Italian insurance providers, small business owners, households in the four mentioned regions, and regulators overseeing market conduct.

Likely next: Regulators may consider measures to boost risk pooling or mandate minimum coverage, while insurers could revisit pricing models to improve affordability.

The article reports that catastrophe insurance policies have failed to gain traction among small businesses and households in Italy. Mutualisation of risk remains weak, and residents of Calabria, Molise, Umbria and Emilia‑Romagna are paying markedly higher premiums. This situation highlights a gap in the country’s disaster‑risk financing framework.

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