Featured Product

    EIOPA Seeks Views on Dashboard to Address Catastrophe Protection Gap

    December 04, 2020

    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.

     

    Related Links

    Comment Due Date: March 31, 2021

    Keywords: Europe, EU, Insurance, Climate Change Risk, ESG, Dashboard, Catastrophe Risk, EIOPA

    Featured Experts
    Related Articles
    News

    NGFS Seeks Public Feedback on Climate Risk Assessment Scenarios

    The Network for Greening the Financial System (NGFS) launched its first user feedback survey on climate scenarios, with the feedback period ending on February 27, 2023.

    February 06, 2023 WebPage Regulatory News
    News

    EBA Launches Stress Tests for Banks, Issues Other Updates

    The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.

    January 31, 2023 WebPage Regulatory News
    News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News
    News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8702