State-backed Italian nat cat reinsurance pool targets January 1, 2026 launch

By Edward Carron

July 10 - (The Insurer) - The public-private reinsurance mechanism for Italy's new mandatory natural catastrophe insurance scheme aims to begin facilitating cover by January 1, 2026, a senior reinsurance source told The Insurer.

The Italian Association of Insurance Companies (ANIA) announced the launch of the mechanism on Monday. A statement from the association said the majority of insurance companies in Italy, representing around 75% of premiums, had signed up as members.

Although billed as a reinsurance pool, the statement said the mechanism will not retain risk or capital. It will instead handle negotiations and transfer the risk to third-party reinsurers, including the state-backed SACE.

A source with direct knowledge of the scheme said the pool's management structure will be established between now and the end of the year, alongside administrative decisions such as selecting a third-party IT provider and deciding how the funding required to pay the pool's small number of full-time staff will be split between member companies.

No announcement has been made at this stage by ANIA around staffing for the mechanism.

The pool will place coverage on both a proportional and non-proportional basis, the reinsurance source said.

Italy's mandatory catastrophe insurance law came into effect for large businesses on June 30.

The law requires all businesses to purchase catastrophe policies that cover earthquake, landslide and flood, but excludes perils related to atmospheric events such as hail and flash flooding following a downpour. The reinsurance pool will only cover those perils included within the new mandatory coverage.