Articles
17/09/2019
Corporate and Commercial

IVASS news: Natural disasters and insurance cover: risk assessment and policy options for Italy

Natural disasters and insurance cover: risk assessment and policy options for Italy

On 30 July 2019, IVASS published Working Paper n. 13 (curated by Riccardo Cesari and Leandro D’Aurizio) focused on the analysis of the risks connected to natural disasters, the proper assessment of such risks and the possible insurance cover available on the market.

In an era in which Italy has been exposed to countless (and somehow unexpected) natural disasters (earthquake, flooding, etc.), that caused substantial damages and unfortunately also many human losses, a system of compensation for damages mainly managed by the state appears ineffective and hardly sustainable from a financial perspective.

Therefore, to face such difficulties, new forms of insurance to cover such risks, not yet developed in Italy, are more and more needed.

This interesting Working Paper analyses the main sources of natural risks in Italy (earthquake and flooding) and makes some proposals for the introduction of new techniques to assess seismic risk, also, but not only, to better manage natural risks.
In this perspective, therefore, the Paper gives a simulation of the insurance protection costs in relation to the earthquake and flooding risks and the possible solutions (with its pro and cons) that are currently available for policy-makers.

 

Working paper n. 13 can be downloaded on IVASS.

 

 

This article is for information purposes only and is not intended as a professional opinion. For further information, please contact Anthony Perotto, Guido Foglia or Michele Zucca.

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