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ECB proposes EU scheme to expand climate insurance uptake

^{Published on 2024-12-18 09:00:49 - Reuters}
 

• Europe's businesses and homes need to increase their insurance cover to better withstand climate catastrophes, the European Central Bank and the EU's insurance regulator said on Wednesday as they proposed policies that could boost uptake.

The European Central Bank (ECB) has proposed a new EU-wide scheme aimed at increasing the uptake of climate insurance to better protect against the financial impacts of climate change. This initiative, detailed in a report released on December 18, 2024, suggests that the EU should develop a comprehensive framework to enhance the availability and affordability of insurance products that cover climate-related risks such as floods, wildfires, and storms. The ECB's proposal includes measures like public-private partnerships, subsidies for low-income households, and the integration of climate risk into financial regulations to encourage insurers to offer more robust climate insurance options. The scheme also emphasizes the need for better data collection on climate risks to inform insurance pricing and coverage, aiming to reduce the protection gap where damages exceed insurance coverage. This move is part of a broader strategy to build resilience against climate change impacts across the European Union.

Read the Full Reuters Article at:
[ https://www.reuters.com/sustainability/ecb-proposes-eu-scheme-expand-climate-insurance-uptake-2024-12-18/ ]

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