Ferma urges Spanish presidency to push key legislation over the line

Ferma has called on the Spanish presidency of the Council of the EU to help deliver a more risk-based approach to the directive on corporate sustainability due diligence (CSDDD), ensure proportionality is enshrined in the revamped Solvency II and deliver political consensus on the Cyber Resilience Act as it raised concerns over a lack of innovative and affordable insurance solutions. The federation of European risk management associations has published a paper on key European legislative issues it would like to see tackled during the Spanish presidency that runs from 1 July to the end of this year. This is an important period for EU policymaking ahead of elections in 2024. Ferma has called upon the Spanish presidency of the Council of the EU to make progress on green and digital transitions a priority to help bolster EU competitiveness and enhance strategic autonomy, while also ensuring the ongoing effectiveness and affordability of the private (re)insurance market. The federation says it supports the ambitions of the CSDDD and the need for companies to address environmental and human rights impacts in their supply chains. But Ferma would like to see a more risk-based approach to the rules that would allow companies to prioritise activities. “To support the green transition, and to meaningfully combat the effects of climate change, Ferma advocates a more risk-based approach to value-chain due diligence aligned with international standards,” the paper says. Ferma is also pushing the Spanish presidency to help get the proportionate treatment of captives in the upcoming review of Solvency II over the line. Ferma told Commercial Risk yesterday that it is increasingly hopeful the ongoing review of Solvency II will usher in more proportionate treatment for captives after the European Parliament published a key report stating its likely position last week. The federation of European risk managers believes that the positive reforms could be finalised under the Spanish presidency of the EU and, therefore, by the end of this year. Ferma says in its latest paper that the adoption of a more proportionate Solvency II framework “would ultimately give captive (re)insurance undertakings the status of low-risk profile undertakings, which would help give enterprises in the EU more options for their risk-transfer strategies”. The paper also highlights the need for “affordable and adequate insurance coverage” to support organisations in their transition efforts. It stresses the importance of closing the growing protection gap. “Ferma is concerned that the private (re)insurance market is not offering sufficiently innovative, affordable or competitive risk transfer solutions,” it states. Ferma goes on to praise the Spanish presidency’s early focus on reducing cyber risk and attaining higher levels of cyber security. It would like to see the presidency achieve political consensus on the proposed Cyber Resilience Act and reiterated concerns over insurance solutions to help European companies meet some of their obligations under the forthcoming rules. “We are mindful of the possible ramifications such a piece of legislation might have on the insurance coverage options for enterprises,” says Ferma. It has also urged the Spanish presidency to help deliver an annual cyber resilience summit involving all key stakeholders. This idea was recently put forward by Ferma and key insurance market players to help solve issues in cyber insurance and improve overall cyber risk management. Commenting on the paper, Ferma president Dirk Wegener said the association looks forward to engaging with the Spanish presidency during this critical period. “The risk management community has a central role to play in advancing developments on all of these critical fronts and contributing to the continued competitiveness of the European market,” he said. Daniel San Millán, president of one of Spain’s risk management associations Igrea, added: “The commencement of the Spanish presidency of the Council of the EU is clearly an important and exciting development for Igrea. We view the risk priorities that Ferma has urged the Council to address as critical not only from a risk management perspective but for the overall competitiveness of the EU.” Juan Carlos López Porcel, president of another Spanish risk management association Agers, said he believes that through close collaboration between Ferma and the risk management community, the EU Spanish presidency can play a central role in supporting the European Council to achieve many of its risk and resilience-focused ambitions. “We firmly believe that the areas that Ferma is focused on will help to ensure a more robust and relevant supply chain for governments and businesses to the benefit of the EU as a whole,” he said.

Ferma urges Spanish presidency to push key legislation over the line

Federation voices concern over risk transfer options

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