Italy ranks in the top 5 positions in Europe for premium collected according the annual report published by National Association of the Italian Insurance Undertaking in 2017. However, Italy is still considered a growing market as not many sectors prefer to get insured in the Italian economy.
Italian law does not provide a definition for reinsurance contracts. The Italian government has trusted the regulation of insurance at the autonomous decision of parties. In fact, the government has limited itself to regulating only certain aspects of reinsurance contracts in Articles 1928 and subsequent ones of the Civil Code.
The reinsurance sector has witnessed a prominent trend of greater importance being given to the new regime of reinsurance being given by Directive 2009/138/EC on the taking-up and pursuit of the business of insurance and reinsurance (Solvency II Directive). Risk management model is being currently functional in the new system which enables reinsurance to optimize the management of risks incurred by a single company or a group of companies. However what needs to be taken into consideration is that catastrophe reinsurance demand from Italian cedants might increase as insurers benefit from the new taxation regime, which gives catastrophe insurers premium certain tax exemptions.
Liberty Specialty Markets (LSM), the London headquartered unit of Liberty Mutual Insurance Group, has rebranded its reinsurance division as Liberty Mutual Re and launched a reinsurance operation in Italy for the first time. The rebrand applies to all aspects of LSM’s reinsurance division. This newly branded London based company will work from its offices in Rome and Milan and set to begin trading immediately with key focus areas being property, casualty, and specialty business. According to the study, ‘Reinsurance In Italy, Key Trends and Opportunities to 2020’, Some major companies working in the reinsurance sector are Munich Re Italia, RGA Re Italy, Hannover Re Services Italy Srl, Swiss Re Italia SpA, Scor Italia Riassicurazioni SpA,
Serious damage was caused to seismic crater areas by recent earthquakes in Italy. Not only have this but also caused indirect devastation in areas that are not traditionally affected by seismic activity. In Italy, landslides are a serious threat to the population. The complexity of the changes in the frequency and impact of rainfall-induced landslides suggests that it remains difficult and uncertain to predict the possible variations in the frequency and impact of landslide in response to future climatic and environmental changes. Piemonte, Liguria, Sicilia, Toscana, Lombardia, Calabria and Campania are some the major regions that are affected by floods frequently ads compared to other areas. Type and density of vegetation, soil type and land use are factors that influence the flood impact on soil in terms of rate and volume of runoff expected from a watershed. Deforestation, construction of dams, urbanization is only some of the human activities that are affecting the floods in Italy. Not only the occurrence of a flood is a problem but also the frequency of these floods has emerged as one the biggest challenge.
Italy is at the front of many economic and social changes and thus has begun to offer new incentives to various sectors including insurance despite adverse macroeconomic conditions in the short term and negative demographic developments in the long term. These opportunities are set to bring a dynamic shift in the reinsurance market.
To know more, click on the link below:
Ankur Gupta, Head Marketing & Communications