No. 31 - Insurance coverage against operational risks of Italian companies: some evidencefrom the Bank of Italy's survey of Industrial and Service Firms

The paper analyses the insurance choices of Italian non-financial companies for the main types of operational risks using data from the Survey of Industrial and Service Firms conducted by the Bank of Italy in the first half of 2022. The results show that almost all the companies in the sample (which only includes companies with at least 20 employees) have bought an insurance policy for the most common risks, such as theft and fire and third party liability. On the other hand, the share of insured companies is lower when it comes to risks associated with natural disasters and climatic events, freight transport, credit and suretyship risk, and cyber risk. The probability of purchasing a policy and the ratio of the total amount of premiums paid to turnover are affected, all other factors being equal, by the size of the company, the area of ​​residence, the sector and the exposure to risk. In particular, both indicators are lower for smaller companies and for those located in the South and in the Islands; they are greater for companies that have suffered damage in previous years or that consider the given risk relevant to their business. Among the main reasons for the choice to not purchase a policy are the excessive premium of the policy and the lack of adequate information. Finally, about three out of four companies indicate that they have not informed the main bank with which they have a credit relationship of their insurance status.