FERMA urges European Commission to establish Expert Group on protection gaps

Following the release of the European Union Climate Resilience Dialogue report, The Federation of European Risk Management Associations (FERMA) has called on the European commission to establish an Expert Group on Protection Gaps.

This aligns with FERMA’s 2024-2029 policy manifesto, which emphasises the need for a permanent body to advise on the EU adaptation strategy,

The report is the culmination of an 18-month project undertaken by a temporary group of stakeholders, with FERMA and Insurance Europe serving as co-rapporteurs for the 17-strong stakeholder group, which included the World Bank, EIOPA, and the UN Office for Disaster Risk Reduction.

Initiated by the European Commission, the group proposes a series of actions, highlights best practices, and explores potential solutions to reduce the climate protection gap.

Typhaine Beaupérin, Chief Executive Officer, FERMA, said: “FERMA welcomes the opportunity to participate in this transversal initiative within the European Commission. The Climate Resilience Dialogue provides a strong foundation upon which to increase awareness of climate risk, and boost levels of resilience and preparedness across Europe.

“However, to build on those foundations, and particularly given the speed at which impacts from climate change are being felt across Europe, we must establish a permanent Expert Group on Climate Protection Gaps to put forward policy recommendations for the next EU Adaptation Strategy.”

The report indicates that participants see value in building on the work of the Climate Resilience Dialogue to launch follow-up initiatives on the climate protection gap.

Therefore, FERMA urges the European Commission to convene a broad range of stakeholders, representing diverse expertise across the initiatives outlined in the report, to be part of the Expert Group with a clear mandate from the Commission.

The report further states, “At enterprise-level, a dedicated function of Risk Manager can help to permeate a risk management culture throughout, generally large organisations”, while also calling for, “the creation of market incentives to invest in risk management solutions.”

Beaupérin added: “The risk management function is critical to helping manage the physical risks resulting from climate change, including the increased frequency and severity of natural hazards.

“At the enterprise level, risk managers also play an integral role in enabling the strategic assessment of those risks and the opportunities in their operations across the value chain that can bolster not only resilience but competitiveness in this new era of risk.”

Insurance is highlighted as one of the key elements of the “coping capacity dimension” of climate risks. The document proposes the introduction of bundled insurance spanning multiple climate perils which could also facilitate a broader spread of risk across hazards and geographic regions, explains the report.

It also explores the potential for establishing reinsurance pools or public-private partnerships to ensure risks, costs, and responsibilities remain shared.

Beaupérin concluded: “The publication of the Climate Resilience Dialogue report is a major achievement and combines the expert input of a wide range of organisations and institutions.

“It is imperative that we recognise the clear call to action that it provides both at company and European level and take the challenging but necessary steps required to narrow the climate protection gap and ensure that we maintain the momentum that this report has created.”

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