Italy's Revo embeds parametric covers in consumer products and specialty insurance

By Henry Gale

June 11 - (The Insurer) - Italian insurer Revo plans to grow its portfolio by selling parametric covers through partnerships with consumer-facing brands and embedded within specialty policies, the company said.

Two of the firm's latest parametric partnerships are with utility firm Optima and ADR Mobility, part of the Aeroporti di Roma group, chief underwriting officer Simone Lazzaro said when the company announced its 2026-28 business plan.

Revo is insuring Optima's customers against the risk of increased household energy consumption due to abnormal temperatures, Lazzaro explained to Parametric Insurer. With ADR Mobility, Revo is offering parametric flight delay and cancellation cover to travellers when they book airport parking spaces.

Revo has also partnered with Spiagge.it, a management platform for beach resorts, since 2022, providing insurance that automatically reimburses customers for the cost of beach umbrella bookings if it rains.

The other aspect of Revo's parametric strategy is embedding parametric covers into its specialty product offering, Lazzaro said. One example is the property catastrophe insurance Revo now offers in compliance with Italy's new catastrophe insurance requirements, where the insurer is providing parametric add-ons to provide businesses with fast payouts after a qualifying earthquake or flood, as well as conventional indemnity-based catastrophe insurance.

Though the law requires indemnity-based catastrophe insurance rather than parametric, Lazzaro said he believed the law would also encourage more businesses to choose parametric cover as they consider their coverage needs and look to increase protection.

Parametric natural catastrophe covers are also included in the higher-tier products of a new commercial combined insurance product the company is launching.

Revo, previously known as Elba Assicurazioni, was acquired in 2021 by an SPAC that planned to make it a leader in parametric and specialty insurance covers for small and medium-sized businesses. Revo-SPAC was founded by Alberto Minali, former CEO of Cattolica Assicurazioni, and Claudio Costamagna, former country head and chairman of Goldman Sachs in Italy.

The insurer's gross written premiums hit 309 million euros ($355 million) in 2024, with its parametric line of business representing 400,000 euros. Under its 2026–28 business plan, it aims to exceed 550 million euros in premiums by 2028.