Perils, the independent Zurich-based organisation providing industry-wide catastrophe insurance data, just announced that it is including earthquake and flood Italy in its coverage. This will allow for new ways to manage catastrophe risk in Italy and to transfer it to reinsurers and capital markets.
Reliable and transparent information on exposed values is crucial to manage catastrophe risk. The most sophisticated hazard models are of little value unless we know the location, the value and the construction quality of the assets at risk. Good information on the losses from historic events is another important ingredient for catastrophe modeling as it helps to calibrate models to loss experience. Perils is providing both – exposure and loss information.
There is much room for growth in the Italian insurance market. A recent Sigma study by Swiss Re concluded that most private dwellings are not insured for natural catastrophes. While insurance penetration is high for commercial property in general, most small companies do not buy any property insurance cover – let alone catastrophe cover.
There is hope that the step of Perils encourages insurers to expand their product offering and that insurance will become an indispensable tool for catastrophe risk management in Italy.
Perils press release: http://ow.ly/1VV4Z7
Sigma study: http://ow.ly/1VVjvr
Category: Climate/natural disasters: Disaster risk, Earthquakes, Floods/storms