Rethinking Europe’s Climate Insurance Framework
Europe is the fastest-warming continent and faces mounting economic costs from climate-related disasters. Insurance is central to managing and mitigating these costs. Yet Europe’s protection gap is significant and persistent, as insurers are increasing premiums or tightening coverage in response to rising exposures.
In this context, CEP is convening a roundtable of European decision-makers and thought leaders from government institutions, to exchange views and best practices, build a shared understanding of the challenges for a European risk pool, and explore solutions to improve Europe’s financial resilience to climate change.
If you are interested in the topic, please write to us: [email protected]
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Europe’s protection gap is significant and persistent, as insurers are increasing premiums or tightening coverage in response to rising exposures. Financial authorities warn that these developments can undermine economic and financial stability, public finances, and ultimately social resilience. While insurance is first in line, climate risks are too large, correlated, and complex for the sector to address alone. The question then is how best to coordinate private and public actions to reduce the protection gap, effectively mitigate climate risks, and equitably distribute costs across insurers, households, businesses, and public institutions.
In this context, the European Commission has positioned insurance as a key element of its new integrated climate resilience and risk management framework. In parallel, the European Central Bank, the European Insurance and Occupational Pensions Authority and the European Stability Mechanism have proposed establishing a public-private EU reinsurance scheme. However, significant technical, financial, and political challenges remain in advancing these proposals and embedding them within a holistic resilience strategy.
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13.45-14.15 Arrival 14.15-14.30 Welcome and Introductions 14.30-16.00 Session 1: Reducing climate risk with a coordinated strategy
How to integrate a European public-private reinsurer within the EU’s climate resilience strategy to support climate risk mitigation, and equitably distribute costs across actors? What lessons can be learned from similar schemes in other jurisdictions?16.00-16.30 Coffee break 16.30-18.00 Session 2: Implementing a pragmatic and sustainable framework
How should a European public-private reinsurer be structured to ensure its political acceptance and its financial viability? What are the conditions under which insurers would participate?18.00-18.15 Closing Remarks 19.00 Dinner
