IVASS (the Italian Institute for the Supervision of Insurance) has observed increasing congestion in claims settlement processes due to the rising frequency of extreme natural events. After gathering relevant information on claims management, the Authority found that some insurance companies have adopted a proactive approach, developing structured medium- to long-term plans to improve overall system resilience.
To promote a more dynamic approach, the Supervisory Authority, in its Market Letter of February 25, 2025, outlined a series of measures aimed at improving claims intervention planning. Particularly significant are the following initiatives:
- Developing “Natural Events” Protocols to enhance claims management efficiency.
- Partnering with specialized firms to give adjusters access to platforms containing data on severe weather and hydrological events, enabling insurers to estimate their exposure in terms of claim volume and value before official reports are filed.
- Launching awareness programs to promote behaviors that mitigate the impact of natural disasters. Insurance products offering dedicated natural event coverage should integrate forward-looking climate indicators and provide incentives for policyholders to adopt risk prevention measures.
- Implementing dedicated procedures for hail-related claims to manage exceptionally high call volumes and improve service efficiency during major weather events.
- Engaging intermediaries to facilitate accurate communication on securing damaged properties and correctly filing claims.
This initiative reflects IVASS’s commitment to promoting a more structured, forward-thinking risk management strategy within the insurance sector, ensuring greater preparedness and resilience in the face of increasing climate-related risks.