According to Swiss Re’s latest expertise study, "The Italian insurance market: opportunities in the land of the Renaissance", Italy stands at the crossroads of economic and social change, and therefore offers interesting opportunities for the insurance industry. The expected scaling down of the government's role in the provision of social benefits will mean that more individuals will have to make their own arrangements for risk protection and retirement financing. The insurance industry must brace itself to help fill the widening protection gap.
Italy, as the world's eighth largest economy, boasts a large and diversified economy, made up of small and medium enterprises exporting high quality products. Italy houses the world’s oldest bank and gave birth to the world's oldest known insurance contract, both of which are a small testimonial to the country’s rich economic history.
The role of the insurance industry in Italy is expected to grow overall. In the adverse macroeconomic environment, growth opportunities are expected to emerge for insurers, particularly in underdeveloped, non-motor lines of business. The recent and expected legislative reforms should pave the way for greater involvement from the insurance industry and help it to play a more prominent role in supporting the country’s economic and demographic challenges.
According to Kurt Karl, Swiss Re's chief economist "The financial crisis has resulted in fiscal tightening and spending cuts which are accelerating the reduction and rebalancing of the welfare system in Italy, leaving a significant protection gap not only in healthcare and old-age provision, but also in natural catastrophe coverage. The insurance industry must prepare itself to take charge of its new, expanded role in Italy to support the state, private entities, and individuals in addressing some of their greatest economic challenges ever."
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