Last month, the Commission launched the Climate Resilience Dialogue, as announced in its Strategy for Financing the Transition to a Sustainable Economy as well as in the new EU Strategy on Adaptation to Climate Change. The first meeting of the dialogue brought together insurers, reinsurers, the corporate sector, consumers, public authorities and other stakeholders to exchange views and best practices to address the losses incurred from climate-related disasters.
The dialogue will explore how insurance and other risk mitigation actions can contribute to climate resilience, from increasing climate risk insurance penetration, to incentives and investment in good adaptation solutions.
Commissioner for Financial services, financial stability and Capital Markets Union Mairead McGuinness said: “The climate protection gap – losses related to natural disasters that are not insured – weakens our resilience to climate change. Resilience can be the difference between life and death, and it can lessen the economic damage too. Insurance strengthens resilience, because it incentivises adaptation before extreme weather events happen, and it helps us recover faster after they do occur. With the Climate Resilience Dialogue, we’re bringing together the people who can help us narrow that gap – insurers, reinsurers, consumers, businesses, public authorities and more. These stakeholders will work on solutions over the next 18 months. I’m confident that, working together, we can make a real difference.”
Executive Vice-President Frans Timmermans said: “The severe droughts, heatwaves and wildfires we saw this summer cost billions in the EU alone. As the vast majority is not insured, the financial burden falls directly on families and businesses or needs to be covered by public finances. The insurance sector has a pivotal role to play in boosting our society’s ability to weather these storms. With proper climate risk management, it can increase risk awareness and promote adaptation measures. This helps to prevent the worst impacts and makes us more resilient when disasters do strike. The challenge is gigantic. If we want to tackle the climate crisis effectively, we must work together more closely across sectors and across countries.”
The dialogue will meet several times up until mid-2024 to identify good practices and deliver voluntary commitments. There are expected to be up to four in-person meetings with all participants as well as more frequent thematic sub-group meetings. The Commission will facilitate and ensure a constructive dialogue, as well as provide secretariat services to the group.
