EU Plans for Insurance Fund to Address Climate-Related Protection Gaps
The European Union is considering the establishment of a natural disaster insurance fund aimed at addressing the growing insurance protection gaps caused by climate volatility. This initiative is driven by the increasing financial fallout from extreme weather events across Europe, such as Storm Goretti, which resulted in significant economic losses. The proposed fund, valued at up to €65 billion, would involve a public-private partnership to pool risks at a European level, allowing for more efficient distribution of exposure and supporting insurers in managing large-scale risks. The European Insurance and Occupational Pensions Authority (EIOPA) has highlighted the need for such a mechanism, particularly in countries like Greece and Italy, which face significant protection gaps for natural disasters. 
