Italy: making more use of insurance to build national resilience
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According to our latest sigma, Italy ranks second lowest in a sample of 31 countries in terms of macroeconomic resilience. With low resilience, the capacity of the economy to withstand shock events is weak and in this environment, the utility of insurance can come to the fore.
- Italy faces prolonged economic stagnation, a shrinking population and large protection gaps.
- At 131% of GDP, Italy's public debt is the second highest in Europe. With public finances under severe strain, the state is increasingly shifting the burden of financial protection to individuals.
- This has led to a 10% increase in private insurance pension funds annually over the last decade.
- Recent public-sector incentives have also sparked greater uptake of private natural catastrophe covers.
- Even so, the public and private sectors need to do more to improve national resilience against still large pension, healthcare and natural catastrophe protection gaps
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