The European Commission plans a Climate Insurance Alliance to expand cover for extreme-weather losses, Ursula von der Leyen announced on September 16. Speaking to the European Parliament in Strasbourg, the Commission president outlined a wider response to drought, wildfires and heatwaves, according to her published address and Reuters.
Von der Leyen said private insurance covers only about 25% of catastrophe losses in Europe, leaving national budgets to absorb costs too often. The alliance aims to narrow that gap. Reuters reported that it would bring together insurers, investors, risk modellers, public authorities and policyholders to increase insurance uptake.
Reuters said the alliance would promote tools such as group insurance and parametric insurance. The latter triggers payments when agreed thresholds, such as rainfall or temperature levels, are crossed. These are planned approaches to managing losses; the announcement does not establish that new cover is already available.
The Commission’s published programme schedules a climate-resilience framework for October. It will identify 100 particularly vulnerable European territories, assess their risks and examine which level of government should manage them. Von der Leyen said preparations must extend to local communities, alongside efforts to reduce emissions.
A separate European Heatwave Plan will address early warnings, health preparedness, urban adaptation and cooling, with support for vulnerable people, according to the speech. A European Water initiative will also address scarcity and leakage. Von der Leyen said nearly one in four litres carried by Europe’s pipes is lost, mostly through leaks.
The Commission has also asked senior firefighters and emergency responders to develop proposals on prevention and preparedness, including a future European firefighting fleet. Von der Leyen reaffirmed Europe’s climate targets while calling for stronger adaptation. The October framework is the next scheduled step; the insurance alliance and other plans still await implementation.
Comments