Generali, one of Europe’s biggest insurance companies, plans to spend more on natural disaster coverage in 2025. However, CEO Marco Sesana says major changes to its reinsurance strategy are unlikely.
Natural disasters like floods, hurricanes, and wildfires are becoming more frequent and costly due to climate change. Insurers like Generali must prepare for bigger risks. That’s why the company is increasing its budget for natural catastrophe (nat cat) protection.
Reinsurance helps insurance companies share risks. Instead of bearing all losses from disasters alone, insurers like Generali buy backup coverage from reinsurers. Sesana says Generali’s current reinsurance setup works well, so no big shifts are expected.
This decision balances cost and security. While climate risks grow, sudden changes to reinsurance can be expensive. Generali prefers a steady approach, adjusting budgets rather than overhauling its strategy.
The move reflects trends in the insurance industry. As extreme weather increases, companies must spend more on protection. Yet, stable reinsurance keeps prices predictable for customers.
Generali’s focus remains on long-term stability. By carefully managing nat cat risks, the company aims to stay strong in a changing climate while keeping insurance affordable.
Other insurers may follow similar strategies. With climate uncertainty rising, balancing budgets and reinsurance will be key for the industry’s future.
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