Other options might be ok as a temporary measure, but the best answer is to learn to hug. It can be great with a partner and can also be very therapeutic and bonding with relatives or close friends.
Your not alone in having that aversion, but at least its not a difficult technique to practice. So find a real live hug-buddy.
But I would avoid Italian family gatherings until you have built up your immunity. Talk about a hugging house of horrors.