Italy extends mandatory catastrophe insurance deadlines
14/05/2025
Italy has extended deadlines for new mandatory natural catastrophe insurance for companies that could trigger significant sanctions for noncompliance.
The extended deadlines are in response to concerns over the implementation timeline for small and medium-sized enterprises (SMEs). The extension aims to allow SMEs more time to assess their options on the market and ensure compliance with the law.
As a result, the implementation deadlines for medium-sized enterprises moves to October 1, 2025, and January 1, 2026, for small and micro enterprises.
The deadline for large enterprises came in on March 31,2025, but sanctions will not be triggered for a further 90 days, which means any failure to comply with the insurance obligation will not be taken into account in the assignment of contributions, subsidies, or financial benefits of a public nature, and for contributions in the event of calamitous and catastrophic events.
The mandatory catastrophe insurance decree means all companies, excluding agricultural companies, based in Italy are required to purchase property insurance coverage for natural disasters, including floods, earthquakes, and landslides.
In May 2023, heavy rains flooded over forty Italian cities and towns in Emilia-Romagna, killing 17 and forcing tens of thousands of residents to evacuate their homes and causing nearly 9 billion euros ($9.8 billion) in damage.
The decree also impacts Italian branches of foreign entities with noncompliance opening the way for significant sanctions on insurers and/or loss of government incentives to companies.
At least two of three criteria must be met to be designated as an organisation of a certain size. The criteria are:
Micro and small enterprises: headcount not exceeding 50 employees (annual average); annual turnover not exceeding €10 million; balance sheet total not exceeding €10 million.
Medium-sized enterprises: headcount not exceeding 250 employees (annual average); annual turnover not exceeding €50 million; balance sheet total not exceeding €25 million.
Large enterprises: headcount exceeding 250 employees (annual average); annual turnover exceeding €50 million; balance sheet total exceeding €25 million.
Coverage is mandatory for buildings, equipment, and land against natural disasters.
Noncompliance by insurers may lead to fines of between €100,000 and €500,000 while required coverage limits and specific deductibles vary based on the sums insured. Existing policies must comply by next renewal or premium instalment.
W Denis arrange specialist Natural Catastrophe Peril (including Flood) protection for organisations throughout Europe and the World. This includes both conventional (re)insurance as well as parametric solutions. For more information please contact:
Eastern Europe
Southern Europe
Christos.Hadjisotiris@wdenis.com
Western Europe &/or elsewhere worldwide