From: Captive International
FERMA has announced its support for the joint proposal by the European Insurance and Occupational Pensions Authority (EIOPA) and the European Central Bank (ECB) to establish a European public-private reinsurance scheme aimed at mitigating the impact of natural catastrophes. While backing the initiative, FERMA also outlined several key considerations to help facilitate to the success of the initiative.
The EIOPA and ECB joint paper, ‘Towards a European System for Natural Catastrophe Risk Management’, proposes a two-pillar EU-level solution designed to help close the widening insurance protection gap for natural catastrophe risks. At its core, it includes the creation of a public-private EU reinsurance scheme to reduce economic exposure to the increasing frequency and severity of such events.
The recently published European Preparedness Union Strategy (EPUS) by the European Commission also stressed the need for the development of the reinsurance mechanism proposed by EIOPA and ECB.
