Italy: New mandatory NatCat coverage regulation soon in place
Italy's natural catastrophe insurance obligation is finally entering into force on March 30, 2025. According to Art. 11 of the Decree 18/2025, published on February 28, 2025, the following regulations will apply:
- The adjustment of insurance policies to the latest legal requirements must be completed within 30 days after publication of this decree.
- For existing policies, the adjustment to the new legal requirements will take effect at the first renewal or the next premium due date.
To Dos:
It is necessary to check whether existing contracts with natural catastrophe cover comply with the legal requirements. The following points in particular must be observed:
- Scope of coverage:
The insurance must cover the following events: earthquakes, floods, high water, and landslides.
- Insured objects:
- Land must be insured in the form of first-loss insurance, with the sum insured being determined in proportion to the land area.
- Buildings and tangible assets must also be insured, including plant, machinery and industrial and commercial equipment.
- Compensation limits for tangible assets:
- For tangible assets between EUR 1 million and EUR 30 million, the compensation limit must be at least 70% of the sum insured.
- For tangible assets under EUR 1 million, 100% of the sum insured must be covered.
- There are no legal requirements for tangible assets over EUR 30 million.
- Deductible:
The deductible may not exceed 15% of the compensation.