Stakeholder engagement on biodiversity loss risk for insurers

Nature, and with it biodiversity, are of critical importance to society’s well-being and economic activity. The loss of nature can have dire consequences on human health, and be a source of economic and financial fragility.

As part of its sustainable finance activities, EIOPA is conducting analysis on biodiversity loss risk in the insurance industry.

As a first step in its analysis, EIOPA issued a staff paper in February 2023 to identify how nature-related risks can transmit to insurers, eliciting possible avenues for risk assessment and mitigation.^[1]

In the following step, EIOPA is collecting evidence on industry's practices in the identification and management  of biodiversity loss risk, with a focus on their Own Risk and Solvency Assessment (ORSA).

Based on the analysis, EIOPA will identify necessary actions for undertakings to support the risk assessment in a proportionate manner. EIOPA will consult on its analysis and deliver a report to the Commission on its findings by June 2025.

The stakeholder engagement aims at gathering evidence on industry experience and practices with integrating biodiversity loss risk assessment in their ORSA.

It will also aim at identifying the main elements for a methodological approach to manage these risks.

^{[1] EIOPA Staff paper on nature-related risks and impacts for insurance - European Union (europa.eu)}