Ferma publishes key lobbying priorities for next European parliament

Ferma has published a manifesto listing its four risk management and insurance lobbying priorities with EU policymakers and institutions in the next parliament, which follows elections later this month. The areas of focus are digital transformation, transition to a sustainable economy, risk management education and ensuring a stable insurance market. European elections on 23-26 May will mean a new European Parliament and a new commission with new policy priorities. Getting on the front foot, Ferma said its new manifesto is meant to be a short and concise document that will form the basis of its discussions with incoming EU leaders. It is “an attempt to obtain more political support for the development of professional risk management within all types of organisations”, explained the federation. One key pillar listed in the manifesto is promoting a stable insurance market. “A stable and secure insurance market supports the resilience of European businesses. Enterprises need an insurance offer that is sufficient in terms of the exposures that they face and that is cost-effective,” Ferma tells the EU. It specifically wants to ensure the EU promotes consistent application of insurance regulation across member states. Ferma singles out the need to apply the proportionality principle to small and less complex insurance ventures, such as captives. It will lobby for proposals that reduce the insurance protection gap, respect the proportionality principle and allow flexibility to enterprises with mature risk management in place. Ferma says the European insurance and reinsurance industry is large and well capitalised “but faces pressures”. It notes that there are is “extensive consolidation taking place in the market for (re)insurance and broking”, which could lead to “reduced choice for European businesses and consumers”. It also notes that natural catastrophes are expected to become more severe as a result of climate change. “This will increase demands on (re)insurance capacity when there is already an insurance gap,” states Ferma. It adds that new risks, especially those associated with digital transformation, are proving challenging for insurers operating within their highly regulated environment. Another pillar, and area of focus, in the manifesto is European leadership in digital transformation to exploit growth opportunities. Ferma wants to encourage the EU to propose incentives to businesses to increase preparations for cyber risks. It also wants policymakers to anticipate the consequences of emerging digital tools on businesses and to develop solutions for SMEs, because not all businesses have a cybersecurity unit. “There is a unique European perspective on digital privacy, cybersecurity and ethical use of digital tools. This is a strong differentiating factor from other regions and an asset that should be developed to become a competitive advantage for EU businesses. The balance between growth opportunities arising from digitalisation and the requirements of a high level of cybersecurity and privacy protection can be supported by the implementation of professional risk management practices within European organisations,” states Ferma It adds that digital transformation has been a major topic for the EU during the past five years and cybersecurity remains a challenge. Requirements are constantly and quickly evolving, with opportunities from the fourth industrial revolution, says Ferma. “Global competition in the digital field is strong. The EU needs to remain competitive whilst managing the risks,” it continues. A third lobbying priority is securing transition to a sustainable economy. The federation will focus on ensuring the EU continues to support and drive forward implementation of the Sustainable Development Goals and the Paris Agreement. The federation will promote the value of risk management in improving resilience to growing disaster risks, and help deliver risk management readiness in all organisations. Other priorities at EU level include supporting European business to produce reliable and comparable data on sustainability, while avoiding a burden for SMEs when it comes to risk reporting. “Reporting requirements must be proportional,” says Ferma. It also wants the EU to recognise that professional risk management can enhance sustainability and provide a competitive advantage for organisations seeking finance. “By supporting professional risk management practices, the EU will help prepare businesses for a sustainable future. Adaptation to climate change will involve embedding this issue into the business models of organisations. Professional risk management can support this objective with a widely recognised methodology,” states Ferma in its manifesto. Ferma’s final pillar is European leadership in risk management education. It wants to encourage public and private organisations, notably SMEs, to develop their risk knowledge and competencies. The federation will push for a European-wide risk management education offering. “Risk management education allows risk professionals to stay relevant in our changing world as the digital and sustainable transformation proceeds. Formal education and certification open doors and confirm a level of knowledge [that] allows professionals to keep pace and manage the risks that organisations face. Leadership and senior management are more likely to bring risk management into conversations as a result,” notes Ferma.

Ferma publishes key lobbying priorities for next European parliament

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