LET'S LOOK BACK …6 April 2009. 5.9 on the Richter magnitude scale, 309 fatalities, 1'600 people injured, 65'000 homeless (equivalent to around 90% of the inhabitants). Six months after the event: around 400 new houses built, representing around 2% of the total private dwellings - the time taken for delivering a temporary house had been too long.
The insurance losses were negligible compared to the economic losses, including the damages to the infrastructures, public entities and SMEs.
Nine years later, the reconstruction is still not finished despite the significant efforts of the central government and the local institutions.
ITALIAN NAT CAT OVERVIEW …. In general, looking at the Italian private dwellings, insurance penetration in the natural catastrophe segment is very low, single-digit, although entire territory is significantly exposed. Around 35% of the private dwellings are exposed to high/medium seismic risk and, around 55% of the private dwellings are exposed to the high/medium flood risk (sources: ANIA, ISPRA, EM-DAT 2017).
Looking at the other segments, the insurance penetration is higher, but still too far from a sustainable level. The Italian Protection Gap in the natural catastrophe segment is enormous and is estimated to around EUR 9.7bn of annual losses, mainly caused by earthquake (EUR 6.9bn) and flood (Euro 2.8bn). Civil risks represent about 80% of the total, (equivalent to EUR 5.5bn). Potentially that means more than EUR 10bn of additional premiums in the industry.
WHAT IS NEW … Recently, the citizens are more sensitive regarding the risk. They are also more impatient when it comes to the delay of the State aid/intervention. The fiscal bonus for the residential risks, which is included in the budget bill 2018, might create a new momentum for the natural catastrophe covers.
ITALIAN Swiss Re XFT IS ACTING … As consequence of the L'Aquila earthquake and the other catastrophic events, which hit our territory and our communities, the Italian Swiss Re cross-functional team decided to focus on natural catastrophe and take on the insurance challenge of covering the natural catastrophe protection gap. When I first joined the natural catastrophe project team, I could hardly imagine the amount of ideas, partners and new technologies that we explore on the way. I fully enjoy this journey and am proud to work with the Tellus team towards our ambitious plan to close the protection gap. We are exploring new distribution channels and innovative solutions and most importantly, we strongly believe that we will in long term make our country more resilient.
Category: Climate/natural disasters: Earthquakes