Why does EIOPA think it is important for insurers to take into account
the risks of climate change now and focus on this part of the
strategic agenda of the European Union, rather than other
challenges?
“Of course we prioritize all areas, but I think arguably all issues related to climate change and global warming are extremely urgent as we receive more and more information from climate scientists. It's also an area where there is some tangible evidence. So for us this prioritization is quite logical. Now, it's not the case that all insurers and all the financial sector have been dealing with these risks in the same way. We see in the market some differences between big, small and medium
sized companies. The bigger companies have already been more focused and are making assessments of risks in this area. We believe the European industry, especially on the insurance side, definitely has a competitive advantage globally. But we need to emphasize the importance of making these issues tangible to the medium sized and smaller sized companies.
And let's be honest, this is important – we see the severity and the
frequency of natural catastrophes are increasing. You can argue if this
is because of climate change or not, but we have evidence of the
frequency of windstorms, or the frequency of forest fires, for example.
This is increasing every year and the severity of it is also increasing, so,
of course, there's a sense of urgency.
