Italian firms get more time to comply with disaster insurance rules

By Edward Carron

April 16 - (The Insurer) - The Italian government has given businesses additional time to comply with new regulations that require them to hold natural catastrophe insurance cover.

• Second postponement of compliance deadline since initial December 2024 date

• Medium-sized businesses have until October 1 to comply

• Small businesses given until December 31 to comply

• Large businesses have a 90-day transition period ending June 30

• Non-compliance affects eligibility for subsidies and incentives

The new regulations requiring businesses to hold cover against earthquake, landslide and flood had been due to come into effect on March 31, but a decree postponing implementation was approved by the Italian government on Friday March 28.

It was then published in the Official Italian Gazette on Monday March 31, and came into force the next day.

Medium-sized businesses now have until October 1 to comply with the new regulations, while small enterprises have a new deadline of December 31, the decree said.

While large businesses are still held to the new regulation, the last-minute decree introduced a 90-day transition period, ending on June 30 to allow time to adapt existing policies.

Companies that have not purchased catastrophe insurance by the applicable date will be exempt from certain subsidies and government incentives, although there are no specific schemes named within the legislation.

Around 95% of Italian businesses are classed as “micro” enterprises, meaning that only a very small portion of companies are being held to the original deadline.

The reason given in the text of the postponing decree for delaying the deadline is to give businesses more time “for a thoughtful comparison of the offers on the market.”

The size categories are defined by the EU Commission’s accounting regulations.

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This is the second time that the deadline has been pushed back. It was originally due to come into force on December 31 2024, but on December 10 it was announced that the law was being pushed back to March 31, 2025.