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.
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Ken
Research
Ankur
Gupta, Head Marketing & Communications
0124-4230204