Bad weather, we are moving towards the obligation to have home insurance against natural disasters
“It’s easy to talk about a new property tax on homes, I can already imagine the controversy when the topic of home insurance is addressed in a while. But a cultural change is needed. For this reason the government has already applied itself to adopt a rule in the 2024 budget for business insurance policiesexcluding agricultural ones: it is a first step. We will gradually move towards the obligation for families to take out home insurance against natural disasters”. This was stated by the Minister for Civil Protection, Nello Musumeci, speaking at the conference “Disaster risk financing: the role of insurance for new public-private partnerships” organized by the National Association of Insurance Companies (Ania) in Rome. The minister’s words come in the aftermath of yet another flood in Emilia Romagnaa year later, has flooded the Ravenna area again, causing damages worth millions of euros.
“The time when the state could provide resources for everyone, forever, is over.. Prevention cannot be an obligation only for institutions: every citizen must be aware of living in a territory at risk and must take every initiative to avoid it”, explained the Minister for Civil Protection. According to data from the Anbi Observatory on Water Resources and the European Severe Weather Database, from the beginning of the year to 15 September 2024, 1,899 extreme events have already been recorded in Italy: 212 tornadoes (52 in the first half of September, 71% on the Tyrrhenian coasts), 1,023 cloudbursts (157 in the first half of September, 91% in the Central-Northern regions), 664 hailstorms with large stones (37 in the first half of September, a record in Versilia with stones measuring between 7 and 9 centimetres in diameter). All three types of extreme weather events hit the eastern area of Emilia Romagna in September.
In Italy currently “only 6% of homes are covered against earthquake and flood risks” and “only 5% of companies have a policy for the same risks”. This is what the president of Ania Maria Bianca Farina points out. In this context, Farina underlines, “the initiative of the Italian Government to introduce mandatory coverage against catastrophic damages for all companies is a fundamental step to reduce the gap. An interministerial decree will allow us to move quickly to the implementation phase of the law”. The Ania president recalls: “Significant progress has been made in recent weeks, we have worked closely with the Government, IVASS, SACE and company representatives to develop an efficient system and ensure rapid implementation of the legislation. The insurance sector is working on contractual and technical details to provide the best coverage for these risks. In addition, other projects are being studied: for example, a voluntary pool of companies could apply the principle of mutualisation to reduce the costs of policies for insured companies and the capital costs for insurers”.
Giorgetti, climate poses risks to economic stability
“Climate change and global development patterns are further accelerating the frequency and severity of natural disasterswhich entail significant risks to economic and financial stability”. This was written by the Minister of Economy, Giancarlo Giorgetti, in a message to the Ania Insurance high-level conference. Giorgetti recalled that “the last decade has seen the most costly catastrophic events in history, affecting economic growth and individual well-being”. “Beyond the immediate damage – he observed – these events have long-term economic consequences negative effects,
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