Report on biodiversity risk management by insurers

This report is the first European supervisory report mapping current practices and challenges in the identification, measurement, and management of biodiversity risks by (re)insurer as part of the existing Solvency II risk management framework. The report analyses market practices based on the existing regulatory requirements for the identification and management of sustainability risks in the Solvency II Directive and Delegated Regulation.

Despite the challenges in assessing biodiversity risks due to their complexity and their interconnectedness with other environmental risk factors, EIOPA’s report notes promising market practices among (re)insurers. At the same time, it points to areas where further engagement will be essential to strengthen the industry’s ability to respond to biodiversity-related risks going forward.

Legal basis

Article 304(c)(3) of Directive EU 2025/2 mandates EIOPA to “[…] evaluate whether and to what extent insurance and reinsurance undertakings assess their material exposure to risk related to biodiversity loss as part of the assessment referred to in Article 45(1).”