Insurance · Sustainability · Investment news

EU warns climate insurance gap must be bridged

Bailey bridges were installed in Germany's Ahr region following the 2021 floods that cost Germany more than 40 billion euro. Photo: Les Impitoyables CC-BY-2.0.
The European Central Bank and the EU’s top insurance body have warned that businesses and households are not sufficiently insured against climate-related disasters, raising the risk of financial instability and economic crises. A discussion paper issued this week argued that catastrophe bonds should play a bigger role in bridging the overall climate insurance gap, while national and European authorities need to encourage uptake of policies to prevent such crises from occurring. 

Register or log in to continue reading. Investment Officer is an independent journalism platform for professionals working in the Luxembourg investment industry.

A subscription is free for professionals working at banks and independent asset managers.