Italy’s insurance market overview

News desk: Italy’s insurance market is poised for steady growth, supported by regulatory reforms, rising climate risks and expanding digital distribution. Gross written premiums are estimated at around €170 billion in 2026 and are projected to approach €200 billion by 2031, implying a compound annual growth rate of just over 3%, according to industry estimates.

While life insurance continues to dominate the market, the non-life segment is expected to expand more rapidly, at close to 8% annually, driven by regulatory changes and increased demand for property protection.

A key catalyst is the introduction of a mandatory natural catastrophe (nat-cat) insurance framework. Since March 2025, non-agricultural companies have been required to insure property, equipment and land against risks such as floods, earthquakes and landslides. The measure is designed to address Italy’s significant protection gap, as fewer than 6% of homes are estimated to have coverage against earthquake or flood damage.

Recent events, including the 2023 floods in Emilia-Romagna and historical earthquakes in central Italy, have underscored the scale of exposure, with economic losses reaching billions of euros. The new framework is expected to gradually increase insured losses while improving long-term resilience.

Life insurance remains a cornerstone of the market, supported by demand for savings and retirement products. Policies such as term life, unit-linked and pension plans continue to attract consumers seeking long-term financial security, although growth in this segment is expected to remain moderate compared to non-life.

The non-life sector spans a broad range of products led by compulsory motor third-party liability insurance (RC Auto). Property, health, liability and specialty lines, including cyber and parametric insurance, are also gaining traction. Health insurance is increasingly used to complement Italy’s public healthcare system.

The regulatory environment, governed by the Code of Private Insurance and overseen by IVASS, emphasises transparency and consumer protection. Recent measures include the introduction of an Insurance Arbitrator for faster dispute resolution and clearer requirements on policy disclosures. Claims handling is subject to defined timelines depending on claim type and ambiguities are generally interpreted in favour of policyholders.

Claims trends are being shaped by both motor and climate-related risks. Motor accidents remain the primary driver by volume, while extreme weather events are contributing to rising property claims. Industry data indicates that more than 500,000 drivers experienced merit-class downgrades in 2025 following claims.

Premiums are increasingly influenced by risk factors such as geography, claims history and exposure to natural catastrophes. Insurers are also facing upward pricing pressure from inflation, higher reinsurance costs and the financial impact of the nat-cat scheme.

Despite its size, Italy’s insurance market shows relatively low penetration outside motor lines, with property and casualty insurance excluding motor accounting for around 1% of GDP. However, growth opportunities are emerging through mandatory coverage expansion, bancassurance, embedded insurance models and digital channels.

The sector is expected to remain resilient through 2026 and beyond, with regulatory momentum and evolving risk dynamics supporting gradual, long-term growth.