Introduction of a New Mandatory Natural Catastrophe (Cat. Nat.) Insurance Regime in Italy

What is the Cat. Nat. Regime?

The Cat. Nat. regime is designed to cover risks related to natural catastrophes such as earthquakes, floods, and landslides. It applies to all companies holding assets in Italy, whether they are Italian businesses or foreign companies with establishments in the country. Agricultural businesses, however, are excluded from this new regime.

Coverage must include buildings, machinery, equipment, land, and any other tangible assets that may be exposed to these risks. Insurance premiums will be adjusted based on each company’s risk exposure, the vulnerability of its assets, and its individual claims history (loan suspensions, tax relief, temporary unemployment).

Penalties for Non-Compliance

Companies that fail to comply with this obligation and do not obtain appropriate coverage will face penalties and will be excluded from public support measures such as loan suspensions, tax relief, and access to short-time work schemes. Furthermore, any company unable to secure adequate coverage must notify the Italian regulatory authority.

Revised Deadlines and Adjustments

The Italian government has recently updated the implementation schedule of the Cat. Nat. regime based on company size. The new deadlines are as follows:

• Small and micro-enterprises (insurance coverage below €1 million): deadline extended to 1 January 2026
• Medium-sized enterprises (coverage between €1 million and €30 million): deadline extended to 1 October 2025
• Large enterprises (coverage above €30 million): the original deadline remains unchanged

Impact on Companies with Interests in Italy

Companies with assets in Italy must ensure that their insurance contracts comply with this new regulation. Failure to do so could result in the loss of certain financial benefits, such as access to public aid or tax relief measures.

In this context, companies concerned are strongly advised to promptly verify the compliance of their insurance policies and, if necessary, renegotiate their contracts to align with the new Italian requirements.

The introduction of this Cat. Nat. regime in Italy marks a significant milestone in protecting against natural catastrophe risks. Companies — especially those with assets in Italy — must act swiftly to ensure compliance and avoid losing critical advantages. However, the adjustments made to the implementation timeline do provide small and medium-sized enterprises with additional time to prepare for this new regulatory framework.

Update as of June 2025: Key Practical Takeaways

Since the publication of the decree, several important clarifications have refined the general framework of this new obligation in Italy:

• Gradual Implementation Based on Company Size
  The insurance requirement came into effect on 31 March 2025 for large companies.
  As a reminder, medium-sized companies benefit from an extended deadline until 1 October 2025, while SMEs and micro-enterprises have until 1 January 2026 to comply.
  
• Assets Covered
  Covered assets include buildings, machinery, fixed equipment, and installations located in Italy. Land itself is not insured, but damage to any infrastructures located on it is covered.
  
• Coverage Terms
  Policies include deductibles and indemnity limits proportional to the value of the insured assets. Certain exclusions apply (e.g., war, acts of terrorism, nuclear risks).
  
• Role of Insurers
  Insurers had until 29 March 2025 to adapt their offerings and inform their clients. Failure to comply may result in administrative penalties.
  
• Reinsurance Mechanism
  A public reinsurance scheme has been established through SACE S.p.A. to help stabilise the market and absorb part of the risk borne by insurers.

Our team is here to support you in auditing your current contracts, comparing local solutions, and ensuring timely compliance.

Useful links :

• Ministerial Decree Text: implementation procedures, definition of covered events, calculation of premiums and deductibles (hager-partners.it, cms.law, bs.it)

• Confindustria Article: on staggered deadlines and key issues for SMEs (confindustria.it)

• SACE – Climate Risk Protection: overview of the public reinsurance scheme for climate risks (sace.it)