Managing climate risk: insurance products and obligations for companies

The effect of climate change is becoming increasingly severe on a global scale, with a significant economic and financial impact. According to data from the European Environment Agency (EEA), between 1980 and 2023, extreme weather events in the European Union caused an estimated €738 billion in economic losses, with over €162 billion (22%) occurring in the 2021-2023 period. In this context, climate risk is an ever-growing concern for businesses and investors, making it essential to implement insurance coverage to protect exposed companies. In Italy, with the 2024 Budget Law, legislators have introduced new mandatory insurance requirements for Italian businesses, set to take effect in April 2025. Insurance companies, for their part, are also stepping up efforts to develop tailored products for climate risks. According to recent data from ItaSIF, the integration of ESG factors into the insurance products of Italian insurance companies follows two main approaches: the provision of insurance products specifically focused on ESG themes, either for climate risk coverage (100%) or to promote insurance inclusion (65%), and restrictions on offering insurance products for activities exposed to high ESG risks (92%). The conference aims to provide an overview of the risks associated with the climate crisis, dedicated natural catastrophe (NatCat) insurance schemes, and regulatory developments at both the Italian and European levels.

Session Chair

Francesco Bicciato, Executive Director ItaSIF – Italian Sustainable Investment Forum

Program

14.00 Introduction by the Chair

14.10-14.30 Carlos Guiné, Head of Sustainability Unit, EIOPA

14.30-14.50 Pietro Negri, Secretary general, AIBA

14.50-15.10 Isabel Reuss, Senior Climate and Social Advisor, ItaSIF

15.10-15.40 Ecomondo Companies

15.40 Discussion and closure by the Chair