Insurance Europe has published its response to the European Insurance and Occupational Pensions Authority (EIOPA) Staff Paper on the demand-side of natural catastrophe protection gap - the difference between total economic losses and the amount covered by insurance.
In its response, Insurance Europe supports the importance of addressing all aspects of the protection gap, including demand-side aspects, and to do so in a collaborative way. The reality of climate change, which is creating more severe and frequent weather events, is making this work more urgent than ever.
However, the industry stresses that it is crucial to avoid a ‘one-size-fits-all’ approach and that any solution to reduce the protection gap should be tailored to the needs of each country's unique characteristics. Finally, the insurance industry reiterates that reducing protection gaps requires greenhouse gasses to be urgently cut and that there is also an urgent need for authorities at all levels - national, regional and local - to adopt profound climate change adaptation measures to reduce risk exposure.