Cyclone Harry reveals gaps in Italy's mandatory disaster insurance

Cyclone Harry swept the Sicily coast in January, causing more than €1 billion in damage. The storm exposed a shortfall in Italy's mandatory catastrophe‑insurance scheme introduced last year, which covers earthquakes, floods and landslides but does not insure against cyclones or storm surges. Small‑ and medium‑size enterprises suffered heavily; for example, restaurant owner Luca Faro reported €400 000 in damage and received only €20 000 in state aid, while his insurer paid nothing. Business groups warned that thousands of firms could receive little or no compensation, calling the situation a "paradox".

To address the emergency, the regional finance institute Irfis FinSicilia allocated an additional €3.2 million, paying 100 applications totalling €1.8 million in aid to citizens and businesses. Regional President Renato Schifani said the funds would ensure no one is left behind. Insurers estimate that natural‑disaster losses cost the Italian state about €7 billion a year, putting pressure on public finances already strained by high debt. Experts linked the storm’s intensity to climate‑change‑related warming of the Mediterranean sea.