Expanding flood insurability in Italy: a concerted effort is needed

Frequency and severity of flood-related natural disasters in Italy has increased over the last decade. While this should sound some alarm in a natural hazards-prone country like Italy, insurance penetration remained low. Swiss Re has developed a flood tool for Italy to help close the protection gap.

Flood is a phenomenon that periodically affects many areas in Italy. It occurs more frequently and affects more people and properties than any other natural peril. Homeowners, small business and public infrastructure in Italy are today largely uninsured against the risk of flooding, posing a threat to Italy's ability to rebound quickly after disaster strikes. The protection gap – the difference between economic and insured losses – widened even more in the past.

"Using an innovative, probabilistic technique that allows to model and price flood risk more accurately, Swiss Re has developed a new flood tool for Italy aimed at expanding the flood risk insurability across the whole country," says Caspar Honegger, Head Flood.

With the introduction of this new tool, Swiss Re shows its firm commitment to the Italian insurance market. However, protecting the population against flood risks requires a cooperation of all stakeholders, including governments, primary insurers and consumers. Carlo Coletta, CEO Swiss Re Italy, therefore calls for concerted effort: "We are here to support the process to close the protection gap and make Italian society more resilient to this type of peril."

Download the publication "Flood resilience in Italy - Acting together".

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