The government is continuing the obligation for companies to insure against “catastrophic damage”. From 1 January 2025, all companies with registered offices or permanent establishments in Italy will be required to take out an insurance policy against damage caused by natural disasters and catastrophic events to land, buildings, plants, machinery and industrial and commercial equipment. This is what is provided for in the draft decree illustrated today, Monday 23 September, by the Minister of Enterprise Adolfo Urso, who speaks of “an important step towards securing our production system”. According to data from Ania, the National Association of Insurance Companies, only 6% of homes are covered against the risks of earthquakes and floods. A percentage that among companies falls to 5%.
How Catastrophe Insurance Works for Businesses
The interministerial decree presented today by Urso provides for “premiums proportional to the risks taking into account the characteristics of the territory and the vulnerability of the insured assets”. The law will implement what is already provided for in the “Reconstruction Bill”, which introduces the obligation for insurance companies to pay an advance of 30% of the damages for damages related to catastrophic events, namely floods, floods, overflows, earthquakes and landslides. Insurance companies will not be able to refuse to take out policies with companies, while Sace, a subsidiary of the Ministry of Economy and Finance, will be able to reinsure the risk assumed by insurance companies through specific agreements.
Confindustria: “Risk of desertification”
Confindustria's objections have so far been in vain, with President Emanuele Orsini launching a new appeal a few hours before the presentation of the draft decree at the Mimit headquarters. “We are talking with Minister Giorgetti about politics: we say that this could become a big problem, because it could happen that in the areas where there are problems, industrialists no longer invest. This means desertifying parts of the territory and we cannot afford it,” commented the industrial leader. “We must take very serious initiatives, sit down at the table and find solutions, we must ensure – added Orsini – that there are no floods and that the structures are adequate to be solid in the event of earthquakes.”
Mandatory home insurance causes government dispute
If the obligation to insure companies is confirmed, the same is not true for that of civil buildings. After the floods in Emilia-Romagna, Minister Nello Musumeci revealed the government's intention to also introduce an obligation to insure against catastrophic damage for homes. But the truth is that not all the majority political forces agree on this proposal. The leader of the League, Matteo Salvini, has declared himself against it, while Antonio Tajani, secretary of Forza Italia, advocates for home insurance to be optional and not mandatory. Gilberto Pichetto, Minister of the Environment, also intervenes now and, pressed by journalists, specifies: “There was no meeting of the Council of Ministers in which the policy for civil buildings was discussed.”
Giani: “Musumeci does not want to solve the problem”
Musumeci's proposal for mandatory insurance against disaster damage is criticized not only by some government officials, but also by the opposition. “After the blow to businesses, we cannot afford another blow to families,” attacks Giuseppe Conte, leader of the 5 Star Movement. “Mandatory policies for disaster risks are currently not even estimable. Do our leaders know that very few companies offer this type of insurance coverage to individuals? Do they know that the costs are linked to many variables and yet remain very high?” asks the former prime minister. Eugenio Giani, Tuscan governor of the Democratic Party, also attacks, adding: “Minister Musumeci has no desire to solve the problem and he attributes it to the insurance companies, but this seems to me to be a method of diverting from the real problem, namely climate change.”
On the cover: Traversara, a hamlet in the municipality of Bagnacavallo (Ravenna), devastated after the Lamone river dam broke yesterday, September 20, 2024 (ANSA/Fabrizio Zani)
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