Insurance coverage against natural risks: a preliminary analysis

Annalisa Frigo () and Andrea Venturini ()
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Annalisa Frigo: Bank of Italy
Andrea Venturini: Bank of Italy

No 830, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: In light of increased natural risks, this work studies the demand by firms for insurance against the physical risks posed by climate change. This analysis is based on the Invind sample, a survey conducted by the Bank of Italy on a sample of Italian companies in 2021. The questions relating to insurance coverage are cross-referenced with the characteristics of the company and the riskiness of their territory, geolocating the companies' production plants and exploiting the granularity of the climatological maps provided by the Euro-Mediterranean Center on Climate Change and the seismic risk maps of the National Institute of Geophysics and Volcanology. The empirical analysis suggests that exposure to seismic risk is positively associated with the demand for insurance policies against natural and climate damage, with heterogeneous effects on companies operating in industry and services. On the other hand, no evidence emerges that the potential impacts from climate change contribute to demand for insurance.

Keywords: insurance; climate; natural disasters (search for similar items in EconPapers)
JEL-codes: G22 Q54 (search for similar items in EconPapers)
Date: 2024-02
New Economics Papers: this item is included in nep-agr, nep-env and nep-rmg
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_830_24

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