EIOPA launched the first pilot dashboard that depicts the insurance protection gap for natural catastrophes. The aim is to represent the drivers of a climate-related insurance protection gap to identify measures that will help in decreasing the losses of society in the event of natural catastrophes. EIOPA is inviting stakeholders to provide views, via a survey form, on the methodology and data used in the dashboard by March 31, 2021. The pilot dashboard is part of the broader sustainability agenda of EIOPA to integrate environmental, social, and governance (ESG) risk assessment in the regulatory and supervisory framework.
The dashboard brings together data on economic and insured losses, vulnerabilities and exposures, and insurance coverage across EU member states. This approach will help in identifying risky regions at risk and protection gap risk drivers, in addition to defining proactive prevention measures. Such a dashboard should also help to:
- Increase the awareness of the protection gap issues for all stakeholders
- Promote a science-based approach to protection gap management and decision-making
- Identify at-risk regions and identify the underlying protection gap risk drivers
- Develop proactive prevention measures based on a granular assessment of risk drivers
- Identify the potential for synergies between national policies to improve protection against natural catastrophes across borders at European level
The dashboard was discussed and validated by a group of selected experts, EIOPA, and national competent authorities from the European Economic Area countries (September 2020). The dashboard provides two views: a historical protection gap and an estimation of protection gap. In view of climate change, the dashboard could also add a third view with an estimation of the future protection gap. This could be, for example, done for perils that are estimated to be strongly impacted by climate change. This would require not only to study the way the hazard and the exposure would change in the future due to climate change, but also to monitor the evolution of vulnerability and the insurance coverage. These are not easy tasks and data gaps have already been identified when trying to estimate protection gaps, especially for vulnerability data. An analysis of data availability also showed that it is not always straightforward to access data for a specific peril, as the data are often aggregated together. The dashboard would, however, benefit from a more granular approach to perils—for example, clearly distinguishing between coastal floods and river floods. The dashboard focuses mainly on the insurance coverage provided by the private sector. A future area of development would be to better integrate description of national schemes and to have a clear split of the losses insured by the private sector versus losses taken by national schemes.
- Press Release
- Overview of Pilot Dashboard (PDF)
- Technical Description (PDF)
- Pilot Dashboard in Excel (XLSM)
- Survey Form
Comment Due Date: March 31, 2021
Keywords: Europe, EU, Insurance, Climate Change Risk, ESG, Dashboard, Catastrophe Risk, EIOPA
Previous ArticleFINMA Publishes Roadmap for LIBOR Replacement
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).
HM Treasury announced that G7 Finance Ministers and Central Bank Governors met ahead of COP 26, the 2021 UN Climate Change Conference, and agreed on green agenda.