# European Commission climate insurance alliance > Live situation record from CLSTR: https://clstr.news/situations/european-commission-climate-insurance-alliance > Updated: 2026-09-26T04:00:00.000Z. Sources: 8. Developments: 2. The European Commission has initiated the development of a ‘Climate Insurance Alliance’, a public-private partnership intended to mitigate the economic impact of large-scale natural disasters such as droughts, wildfires, and severe storms. The initiative addresses a significant gap in disaster coverage, as current estimates suggest only approximately 25% of climate-related losses in Europe are covered by private insurance. This leaves a substantial financial burden on national treasuries. For context, Triodos Bank estimated that extreme heat alone cost the European economy 180 billion euros in the current year. Major insurance providers, including Allianz, Zurich, AXA, Munich Re, Generali, Swiss Re, Prudential, Mapfre, and Sampo, are expected to issue a joint statement regarding the crisis. While the alliance aims to connect the insurance sector with public authorities to foster climate resilience, some stakeholders, such as the European Farmers’ Confederation, have noted that practical difficulties regarding insurance tools and reimbursements persist within national agencies. ## Timeline ### 2026-09-26: European insurers and Commission form climate risk alliance The European Commission and major insurers are forming the Climate Insurance Alliance to mitigate the financial risks and rising public costs caused by increasing climate-driven natural disasters in Europe. 2 sources. https://clstr.news/cluster/european-insurers-and-commission-form-climate-risk-alliance ### 2026-09-20: European Commission announces climate insurance alliance European Commission President Ursula von der Leyen announced a climate insurance alliance to address the fact that only 25% of European climate disaster losses are currently covered by private insurance. 6 sources. https://clstr.news/cluster/european-commission-announces-climate-insurance-alliance --- Cite as: European Commission climate insurance alliance. CLSTR, https://clstr.news/situations/european-commission-climate-insurance-alliance