Revised Staff Paper on Measures to address demand-side aspects of the NatCat protection gap

Given the increase in severity and intensity of climate related events, as part of the EU strategy on adaptation to climate change, EIOPA has increased its focus on addressing protection gaps. In fact, there could be important economic and societal losses across Europe. Hence, EIOPA has taken a number of initiatives aimed at ensuring that the insurance sector is resilient enough to withstand climate shocks and that it contributes to making society more resilient to such shocks.

This Staff Paper explores the demand-side factors that are preventing households and businesses from buying insurance against natural catastrophes. It also proposes a number of consumer-tested solutions to overcome these challenges and in so doing, bolster European households’ and businesses’ resilience to extreme weather events.

The Staff Paper benefited from feedback received during a Public Consultation in the second half of 2023.