It will be a whole new business atmosphere in Italy starting on January 1, 2025. That’s because the federal government there will require every company to buy climate insurance as internal financial support to offset losses from floods, landslides, and other natural hazards.

The warnings about global warming in Italy have morphed from story to harsh reality, yet most Italian businesses — especially small and mid-sized ones — have no climate risk protection at all. The new law mandates that companies must buy coverage and insurers must write policies or face fines. The plan is backed by a €5 billion ($5.3 billion) reinsurance fund, set up by a state-controlled financial institution.

Carolyn Fortuna