Economy Minister Giancarlo Giorgetti on Friday stressed the urgent need to tackle the climate crisis, warning of the dangers it poses to economic stability.
“Climate change and global development models are accelerating the frequency and severity of natural disasters, which pose significant risks to economic and financial stability,” Giorgetti said during a high-level conference organised by the Italian insurers’ association ANIA.
He noted the last decade has witnessed some of the most costly catastrophic events in history, severely affecting economic growth and individual well-being. “Aside from the immediate damage, these events have long-term negative economic consequences, as they disrupt markets and strain public finances,” Giorgetti added.
Civil Protection Minister Nello Musumeci, who also spoke at the conference, suggested the government may consider making it mandatory for households to take out insurance policies covering properties against natural disasters. The proposal is in response to the increasing risks posed by extreme weather events.
Italy’s exposure to hydrogeological risks, including flooding, mudslides, and landslides, has been highlighted by recent extreme weather events, such as the floods in Emilia Romagna this week. The country’s vulnerability to these disasters underscores the urgent need for action.
On Wednesday, Prime Minister Giorgia Meloni addressed Confindustria’s assembly in Rome, expressing her intention to push for changes to the EU Green Deal. She stated the deal, in its current form, is too damaging to European businesses and must be “corrected” to balance environmental protection with economic interests.
Commentary
One sure way to boost a sector of the economy is to make it obligatory for people to use it. This would be the case for the insurance sector in Italy should Musumeci’s suggestion become law.
Italy is a country at risk from natural disasters, not just hydrogeological. Volcanos and earthquakes, and other environmental issues, pose a risk to approximately 95% of Italy. It would seem, therefore the responsibility for ensuring property is protected as much as possible is a priority. But not just through insurance.
That would involve ensuring buildings are constructed to the right specifications, and not in areas at high risk of quakes, flooding and landslides.
There needs to be a better infrastructure and way of dealing with the aftermath of environmental and geological disasters without putting all the onus on homeowners.
It’s all too easy to stand at an insurers’ conference and say things to please the assembled mass.
I would always recommend you insure your own property; it gives you peace of mind should something happen. However, we all know how insurance companies love to ramp up the premiums when you make a claim. And if you live in Emilia-Romagna, and the local and national government are both slow to implement preventive measures, the onus could end up being on the individual to pay for everything.
Is it not time for the government to ensure necessary works have priority? Should the government not invest in the areas where they continually suffer, rather than engage in aggrandisement projects such as the Messina Bridge? Is it not the responsibility of the government to ensure Italian residents are safe in their own homes?
Once the government has addressed the shortcomings from their side, then would be the time to make homeowners pay for insurance. Not before.
