Bancassurance, catastrophe risk management: a €1.7 billion opportunity for banks and wealth management

Milan, April 13, 2026 – More than a year after the introduction of the mandatory coverage against catastrophic risks provided for by the 2024 Budget Law (Law No. 213/2023), the Italian productive system remains largely uninsured: only 12% of the approximately 5 million businesses currently have an active policy against earthquakes, floods and landslides, up from 7% before the regulation, but still far from widespread risk coverage. And, against an estimated potential of approximately €2.4 billion in annual premiums, actual premium volume stands at around €700 million. The gap, equal to approximately €1.7 billion, represents one of the most significant growth opportunities for the insurance system. This is what emerges from a study by Excellence Consulting, based on ANIA, IVASS and ISTAT data, proprietary analyses, and market evidence collected from leading insurance operators.

In the details of the analysis conducted by the Milan-based consulting firm, the reasons behind the lack of policy uptake are structural rather than economic. Demand remains weak despite an average premium, depending on the insured amount and location, of around €700–1,000 per year; however, this premium falls to approximately €300–500 for micro-enterprises, because the risk is perceived as remote, the obligation as only weakly binding, and the product as too complex. This is compounded by distrust in compensation timelines, which directly affects the business continuity of companies suffering such losses. However, it is undeniable that, in the absence of coverage, a catastrophic event can lead to a significant increase in the probability of insolvency for the companies involved, with more marked effects in areas more exposed to risk and a consequent deterioration in their creditworthiness (Bank of Italy, Financial Stability Report 2025).

What does the regulation define? Its technical scope includes: buildings covered at full replacement value, plant and machinery at replacement cost, and land on a first-loss basis. Coverage limits follow a stepped logic – up to €1 million equal to the insured sum, between €1 million and €30 million at no less than 70%, beyond that through free negotiation – with a 15% deductible up to €30 million (2024 Budget Law and MIMIT Decree of June 18, 2025). To support the system, the regulation introduces the prohibition for insurance companies from refusing to underwrite catastrophe policies and establishes the role of SACE as public reinsurer.

As for the distribution of risk, it appears highly uneven. According to ISPRA data (Hydrogeological Instability in Italy), Calabria leads in seismic risk, followed by Abruzzo and Basilicata; Valle d’Aosta records the highest level of landslide risk, while Emilia-Romagna ranks highest for floods. This geography is reflected in marked differences in product pricing: from an average of around €459 in Sardinia to more than €7,800 in Liguria, highlighting a significant gap between the real price of catastrophe risk insurance and the price perceived as affordable, especially for micro-enterprises (Excellence Consulting analysis based on ISPRA and Guy Carpenter data).

“The issue is not the existence of the market, but its accessibility,” observes Antonello Di Mascio, Chief Research Officer of Gruppo Excellence. “The gap is concentrated among micro-enterprises, which are the least served by distribution. It is essential to bring simple and understandable solutions to an extremely fragmented productive fabric, which distribution today is unable to reach effectively.”

“To respond effectively to this business need,” adds Maurizio Primanni, CEO of Gruppo Excellence, “a change in the business model is required: both from the offering perspective, based on hybrid, traditional and parametric solutions capable of guaranteeing immediate liquidity when the loss occurs; from the service model perspective, based on effective advisory support aimed at helping clients understand the real risk and the value of the insurance solution; and from the distribution model perspective, where building a synergistic system between the insurance company and the commercial bank could prove to be the winning choice.”