FERMA has reiterated its proposal for the European Commission to establish an Expert Group on Climate Protection Gaps as part of its 2024-2029 policy manifesto.
This follows the recent release of the EU Climate Resilience Dialogue report, which addresses ways to narrow the climate protection gap and strengthen resilience to climate change across Europe.
The report is the result of an 18-month project led by a temporary stakeholder group initiated by the European Commission. It outlines a series of actions, identifies best practices, and explores potential solutions to reduce the climate protection gap.
FERMA, alongside Insurance Europe, co-rapporteur the 17-member stakeholder group, which also included participants such as the World Bank, EIOPA, and the UN Office for Disaster Risk Reduction.
Typhaine Beaupérin (pictured above), CEO of FERMA, commented on the report, stating that the initiative provides a solid foundation for increasing climate risk awareness and enhancing resilience and preparedness across Europe.
However, Beaupérin noted the need for a permanent Expert Group on Climate Protection Gaps to build on this work and contribute to the next EU Adaptation Strategy, citing the urgency of climate impacts already being felt across the continent.
The report highlights the potential for further initiatives stemming from the Climate Resilience Dialogue to address the climate protection gap. FERMA advocates for the European Commission to form the Expert Group, bringing together a broad range of stakeholders with expertise in the areas identified by the report. The proposed group would have a clear mandate from the Commission to provide policy recommendations.
Risk management is identified as a key component in achieving the necessary climate resilience across Europe. The report states that risk managers, particularly in large enterprises, are crucial in fostering a risk management culture. It calls for the creation of market incentives to encourage investment in risk management solutions.
Beaupérin emphasised the role of risk managers in managing physical risks from climate change, including more frequent and severe natural hazards, and noted their importance in strategic risk assessment across operations.
The report also underscores the role of insurance in narrowing the climate protection gap, describing it as a crucial element in managing climate risks. It suggests introducing bundled insurance products that cover multiple climate-related perils, allowing for a broader distribution of risk across different hazards and regions.
The report further explores the potential for creating reinsurance pools or public-private partnerships to share the risks and responsibilities between the public and private sectors.
Beaupérin concluded that the publication of the Climate Resilience Dialogue report is a significant milestone, combining the expertise of various organisations and institutions. She called for action at both company and European levels to address the climate protection gap and maintain the momentum generated by the report.
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