Ferma says lack of insurance cover ‘severely limiting’ EU’s ability to meet climate targets

Ferma has called on the EC to create a permanent risk management function or appoint an executive risk officer in its latest policy manifesto, which urges EU leaders to tackle a lack of insurance solutions for the net-zero transition, mounting regulatory complexity and cyber security challenges, and ensure it is better placed to face future crises. The European risk and insurance management federation has today released its EU Policy Manifesto, which lays out its priorities for policymakers in the EU Institutions during the next institutional mandate that runs from 2024 to 2029. The four priorities are designed to help boost the EU’s resilience and were chosen following a survey and discussion with Ferma members. These priorities are: Simplify the regulatory maze to keep European companies competitive Support the transition to net zero by taking a risk management approach Build a more cyber secure and resilient EU Bolster the EU’s preparedness and response capabilities for future crises. The manifesto urges the EU to increase the role of risk managers in the race to net zero and raises concerns about a lack of insurance support for companies making the transition. Ferma believes the lack of relevant cover is “severely limiting” the EU’s ability to meet climate targets and must be addressed at parliamentary level. To help tackle this problem, Ferma has proposed the EC creates an Expert Group on Climate Protection Gaps to generate policy recommendations for the next EU Adaptation Strategy. It has also called on the European Parliament’s Committee on Economic and Monetary Affairs to hold a hearing on the challenges companies face securing insurance coverage to facilitate the net-zero transition. To boost crisis preparedness, Ferma wants the EU to enhance resilience by prioritising risk management across all fronts and establishing robust crisis preparedness and response tools through enhanced cross-border collaboration. To help deliver this, Ferma has called for the creation of a permanent risk manager function or executive risk officer within the EC. Ferma has also asked to join the EU’s Foresight Network and urged the EU to provide more tools, funds and guidelines to help organisations cope with potential supply shocks during emergencies. The association’s manifesto raises concerns over the proliferation of EU rules and requirements over the last five years, and urges the EU to simplify regulation to help firms remain competitive. Ferma has therefore called upon policymakers to task the Fit for Future Platform (F4F) with providing the EC with clear and actionable recommendations on areas where thematic policies overlap or can be simplified. It has also proposed supporting the implementation of adopted legislation in concert with impacted stakeholders, including providing clear implementation guidance. The final part of the manifesto focuses on bolstering EU cyber resilience. Ferma flags the importance of continuing to focus on cyber prevention and risk management but stresses the need to better quantify cyber exposures more accurately, particularly as AI and cybersecurity issues increasingly overlap. The federation has called upon policymakers to develop common EU cybersecurity standards building on ENISA’s Cybersecurity for SMEs report, while also proposing revisions to the EU Cyber Security Strategy that integrate cyber risk management and insurance into the review. And the federation has reiterated its call for the EU to look into the feasibility of a cyber reinsurance pool, or alternative mechanism for catastrophic cyber risks. Commenting on the policy manifesto, Charlotte Hedemark, Ferma president, said: “The incoming EU leaders are facing a risk landscape of almost unparalleled complexity heightened by growing geopolitical tensions, ongoing economic uncertainty and the constantly expanding cyber threat. Our manifesto aims to promote risk-focused solutions to help elevate resilience and boost competitiveness across the EU and apply Ferma's comprehensive risk expertise to drive positive action on these four critical pillars.” The federation’s CEO, Typhaine Beaupérin, added: “We will use our manifesto to provide a robust basis for productive discussions between the incoming EU leaders and Ferma. Acting on behalf of 23 risk associations in 22 European countries, representing over 5,600 risk professionals, the federation is committed to facilitating constructive, risk-focused dialogue with policymakers that leads to decisive action across these four priority areas of regulation, the net-zero transition, cyber resilience and crisis preparedness.”

Ferma says lack of insurance cover ‘severely limiting’ EU’s ability to meet climate targets

Federation urges EC to create risk function or CRO role in new manifesto

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