Genoa: municipal insurances

NL6_7For risk management, the Municipality of Genoa uses the services and the expert advice of a broker, selected through a public tender which expires after two years. Italbrokers SpA, a leading group of international partners, is currently providing this service.  The internal structure of the Municipality relies on insurance services through public tender, by adopting the patterns of contract, the terms and deductibles that the broker has tested on the market and has agreed with the Administration.

The City has chosen to have primary insurance coverage offered by the market, keeping for the Entity only the residual risks. Some main current insurance policies are: Third party liability and organised; Liability for vehicles; Fire and other emergency situations; Trade Policy; etc.

The Municipality of Genoa, therefore, exclusively manages its own risks. Some important services, such as road maintenance, the waste cycle, public transport, are provided for by some subsidiaries of the City, which file high amounts of claims that are managed independently.

Over the last few years, the Municipality has struggled to find the necessary insurance coverage on the market. This has resulted in a considerable increase in costs and in higher premiums, in the most common clauses uncovered positions, high deductibles or even lack of quotation of certain risks by the market. The Municipality and Aster S.p.A. found themselves in the position of having to secure and manage almost totally their claims (insurance losses), as the Insurance company only covers high-amount risks.

A committee made up of representatives of the municipalities and Aster was therefore set up, with the aim of taking decisions on claims collectively. Unfortunately, in recent years, the Municipality of Genoa, in particular, and many other municipalities in the Region of Liguria, have been severely hit by natural disasters, which caused massive damage to the land and people. Some of these major risks are not covered by regular insurances.

In May 2014 Genoa contacted the City of Gävle (Sweden), asking for detailed information on their practice. MUNICIPAL INSURANCE COMPANY is a good practice that comes from Gävle Municipality, that began its insurance business in 2003 and in 2012 recorded its tenth year.