European Commission announces climate insurance alliance

European Commission President Ursula von der Leyen has announced the establishment of a climate insurance alliance to address the significant gap in disaster coverage across Europe. Currently, only approximately 25% of losses caused by climate-related catastrophes in the region are covered by private insurance, leaving a substantial financial burden on individual states.

The initiative aims to create a platform connecting the insurance sector, public authorities, and other stakeholders to develop solutions for climate resilience. This move is part of a broader strategy to foster a more integrated and competitive European economy through the Capital Markets Union and a strengthened banking sector.

Andrea Tiso, national president of Confeuro (the European Farmers' Confederation), welcomed the objectives but emphasized the need for immediate action. He noted that while the focus on insurance is positive, practical difficulties in managing insurance tools and reimbursements persist, citing technical issues within national agencies like Italy’s Agricat.