Risk diversification and up-scaling potential - Italy

The development of sustainable insurance solutions requires thorough risk assessment, modelling and layering. Agricultural and climate risks are mainly of a systemic nature, i.e. they affect a large geographic area or large parts of the population simultaneously. If the insured risk is not adequately spread, one catastrophic event can threaten the viability of the whole scheme. To lower covariate risks, the portfolio thus needs to be diversified in terms of crops, type of risks, and different geographical regions.

The aim of the DERRIS project is therefore to share risk assessment tools and skills, to define adaptation and disaster recovery plans, and to promote financial instruments that encourage sustainable resilience, not only at industrial sites of economic importance, but also widening the scope to the entire productive structure of the country and its citizens. The development of sustainable insurance solutions requires thorough risk assessment, modelling and layering. Agricultural and climate risks are mainly of a systemic nature, i.e. they affect a large geographic area or large parts of the population simultaneously. If the insured risk is not adequately spread, one catastrophic event can threaten the viability of the whole scheme. To lower covariate risks, the portfolio thus needs to be diversified in terms of crops, type of risks, and different geographical regions. The aim of the DERRIS project is therefore to share risk assessment tools and skills, to define adaptation and disaster recovery plans, and to promote financial instruments that encourage sustainable resilience, not only at industrial sites of economic importance, but also widening the scope to the entire productive structure of the country and its citizens.