Mandatory insurance of tangible fixed assets against catastrophic risks
We held the second event in the series “The Green Way: Sustainability Across Sectors” with a focus on mandatory insurance of tangible fixed assets against catastrophic risks.
DLA Piper professionals from the Insurance and Real Estate Sectors and insurance industry representatives discussed topics of great relevance in the context of business adaptation to climate change and ecological transition.
Let’s see what emerged.
Awareness and culture of risks prevention
In her introductory remarks, Alice Villari drew the link between the insurance obligation against catastrophic risks and climate change, emphasizing how insurance coverage is among those tools that are part of climate change adaptation. In particular, sustainability-related goals must address the promotion of both tools, including mandatory ones, that reduce the insurance protection gap and a culture of risk prevention and awareness.
It has been noted that in 2023, in just two Italian regions (Emilia Romagna and Tuscany), climate and catastrophic damages totaling more than EUR12 billion were recorded, of which only EUR800 million were covered by insurance policies.
The Budget Law and the expected interministerial Decree
Karin Tayel and Valentina Grande then offered an analysis of the new legislation, providing obligations and responsibilities of companies and insurance companies, respectively.
On 30 December 2023 the Italian Parliament issued the Budget Law for 2024 fiscal year (ie Law no. 213/2023, the Law).
The Law introduced - for the first time - a specific duty for corporate entities (with head office or permanent establishment in Italy) to take out- and for insurers, to offer - policies covering certain natural catastrophes.
The Law required the issue of an interministerial decree by the Ministry of Economy and Finance and the Ministry of Enterprises and Made in Italy, to set out implementing rules. So far have been circulated only two drafts. The final version of such decree is expected soon. In fact, the deadline to enter into mandatory policies covering catastrophic events will expire on 31 March 2025.
The round table: risks assessment and use of artificial intelligence
During the panel discussion, moderated by Francesco Ascione and Karin Tayel, speakers included Laura Marotto, Legal Director of HDI Assicurazioni; Roberto Carnicelli, Co-Founder & CEO of Eoliann; and Francesco Testa, Head of the Complex Claims Office at Crédit Agricole Assicurazioni.
Discussion was focus on various different topics.
Laura Marotto commenced the round table with a preliminary consideration concerned the coverage exclusion for properties that arose ab origine with building abuse or that underwent subsequent alterations without title.
Next, Roberto Carnicelli from Eoliann focused on the use of artificial intelligence for assessing the risk of extreme events and evaluate the conditions of the assets to be insured.
Finally, Francesco Testa shares is experience with the natural events occurred in July 2023 affecting Lombardy, Veneto, and Friuli Venezia Giulia, which had a major impact on the insurance company at the level of opening claims and involved the creation of a task force to proceed promptly with settlements by, for example, strengthening the tool of video expertise with the technicians involved.
EIOPA and the global context
Finally, David Marino highlighted the complex context of the challenges facing both businesses and insurance companies. The Italian regulations are part of a broader context, represented in a recent joint paper by the Bank of Italy and EIOPA, which analyzed the European context and beyond to identify possible solutions to arrive at a coordinated European catastrophe risk management system.
