Climate Events and Insurance Demand - The effect of potentially catastrophic events on insurance demand in Italy

TL;DR

This paper investigates how increasing extreme climate events influence insurance demand in Italy, highlighting changes in precipitation patterns and the implications for economic activities and disaster risk management.

Contribution

It provides an empirical analysis of precipitation trends in Italy and explores the impact of climate extremes on insurance demand and economic resilience.

Findings

Decrease in total number of precipitation events in Italy

Increase in high-intensity precipitation events

Significant implications for disaster risk and insurance markets

Abstract

Climate extreme events are constantly increasing. What is the effect of these potentially catastrophic events on insurance demand in Italy, with particular reference to the economic activities? Extreme precipitation events over most of the midlatitude land masses and over wet tropical regions will very likely become more intense and more frequent by the end of this century, as global mean surface temperature increases. If we look to Italy, examination of the precipitation time series shows a sensitive and highly significant decrease in the total number of precipitation events in Italy, with a trend of events intense dissimilar as regards to low and high intensity, with a decline of firsts and an increase of seconds. The risk related to hydrological natural disasters is in Italy one of the most important problem for both damage and number of victims. How evolves the ability to pay for damages, with a view to safeguarding work and economic activities, and employment protection?