EUR 4 billion and counting - first governamental estimation of the earthquake losses in Central Italy

29 September 2016 — Daniela GHETU
According to a recent statement of the Italian PM Mateo RENZI, the earthquake that has dramatically affected Italy on August 24 has caused losses of at least EUR 4 billion. However, the figure represents only a first estimate of the government, while the total losses are still being assessed.

"Our country will rebuild the areas hit by the quake so they are as beautiful - more beautiful than before," Mr. RENZI said. For the time being the main effort were directed to finding housing solutions for people who have been made homeless - 2,500 people still living in tents -, as well as for other first emergency measures.

October 3rd was decided as the deadline for the Government to make clear the machanism of full recognition of the damage caused by the earthquake. Based on the past experiences of reconstruction operations after destructive earthquakes, burdened by corruption or dissatisfying works scandals, the Renzi team aims to avoid the situation "where every year we will have to discuss quotas for compensation."

Meanwhile, the idea of introducing a form of mandatory home insurance remains on the table, although quite unpopular. "Compulsory insurance is the fastest way to reach the largest number of insured - has recently stated Carlo Coletta, Country manager Taly for SWISS Re, quoted by the Italian press - and the higher the number of the insured, the better the distribution of risk, the lower the premium you pay." In short, pay all to buy for less, with the forms of incentive that could help spread the tool, says Swiss Re's manager: "For as by eliminating or drastically reducing the tax of 22.25 per cent levied on insurance policies against natural disasters. Among other things, given the low prevalence of these hedges, the impact on revenue would be almost nil. First of all, however, need an effective information campaign, because if the insurance continues to be perceived as a cost, incentives affect up to a certain point. "

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