Unipol stands as a prominent figure in the Italian insurance sector, distinguished by its deep roots in the cooperative movement and its status as a listed company on the Italian stock exchange. With a customer base nearing 70 million, a workforce of 12,000, and direct insurance premiums totalling €15.6 billion, the company operates within a context marked by Italy’s high vulnerability to catastrophic events.
The Italian context: vulnerability and insurance gap
Italy has experienced approximately 155 catastrophic events over the past 50 years, with a marked increase in both frequency and severity in recent decades. The resulting damages have reached €53 billion, underscoring the nation’s exposure to climate risks. Despite this, the insurance gap remains significant: only 6% of homes and 5% of businesses possess adequate insurance coverage, leaving 95% of potential risks uninsured. While large and medium-sized companies tend to be insured, Italy’s economic landscape is dominated by small and micro-sized enterprises, which largely lack protection.
Data-driven resilience and innovation
Unipol has prioritised data as the foundation for its resilience strategy. The company established a centre of excellence in data science and computer science in 2016, now employing around 600 experts in artificial intelligence and data analytics. This internal expertise has enabled the development of proprietary climate risk models and catastrophe prediction tools, positioning Unipol as a leader in the field.
Collaboration is central to the company’s approach, with partnerships spanning scientific institutions at both national and global levels. Notable initiatives include the European Extreme Events Climate Index (EQCI), which assists insurance companies and institutions in monitoring and quantifying the frequency and severity of extreme climate events. Additionally, the Mapping and Vulnerability Monitoring Project leverages artificial intelligence and data visualisation to help businesses assess the impact of extreme events.
Raising risk awareness and engagement
Recognising the need for greater risk awareness, Unipol has developed tools for farmers and homeowners to map and understand their climate risks, identify adaptation measures, and reduce exposure. These resources are disseminated through various channels, including the company’s website and agency network, aiming to sensitise thousands of enterprises and families to climate risks.
Product design and regulatory change
Product innovation is a core element of Unipol’s resilience model. The company’s loss prevention team conducts risk assessments for corporate clients, providing tailored reports and advice on prevention measures. However, the majority of the market comprises small businesses, prompting a shift in strategy following the 2024 budget law, which introduced an obligation for companies to insure against catastrophic events. While compliance is not enforced through penalties, non-compliant companies are excluded from public grants and subsidies.
Digital platforms and proactive risk management
To address the protection gap, Unipol has launched a digital platform for member companies of major Italian business associations, enabling risk assessment and access to insurance solutions. The company also offers a weather alert service via its app, providing forecasts and custom alerts to help clients prepare for severe events.
A new model for managing claims has been implemented, particularly in response to the surge in catastrophic events in northern Italy. The platform monitors early warning signals, estimates potential losses, and enables rapid intervention and claim settlement, supported by artificial intelligence.
Advocacy and stakeholder engagement
Unipol actively promotes dialogue among institutions, the scientific community, and the private sector to identify effective governance models for risk management. The company’s commitment to sustainability is evident in its efforts to care for vulnerable communities, foster partnerships, and translate technical measures into sustainable practices.
Unipol’s integrated approach to resilience, prevention, and risk reduction exemplifies how data-driven innovation, regulatory adaptation, and stakeholder engagement can collectively strengthen the insurance sector’s response to climate challenges.
