Wegener calls for more support from insurers on PPP solution

Ferma president Dirk Wegener wants more support from the insurance industry for the federation’s campaign to develop a public-private partnership (PPP) at EU level to cover systemic and catastrophic risk, which aims to help close the growing protection gap. In his opening speech at the Ferma Forum in Copenhagen today, he also urged risk managers to seize the risk leadership role that is needed to help European companies tackle what he described as the perhaps the greatest economic transition since the industrial revolution. Addressing a record turnout at the Ferma Forum, Wegener said risk managers and insurers must work in partnership to close the insurance protection gap that is leaving customers struggling to get the cover they want for a range of big systemic risks such as pandemic, climate change and cyber. Ferma believes that solving this problem requires a combined effort from insurers, insureds and government, and has been pushing for the creation of a PPP to build the risk transfer capacity that companies need. Although such a scheme has gone on the back burner at EU level as members states grapple with a whole host of other crises since the pandemic, Ferma remains hopeful that the idea will gain traction again once things calm down. But Wegener feels insurers could do more to support their clients on this issue and thinks they are failing to grasp the important role they can play in protecting companies and society. “Frankly, I don’t feel all insurers understand this discussion as an opportunity to extend their societal relevance. I wish they would team up with us to lobby for a PPP more often and more strongly,” he said. “The private insurance sector is essential to make this happen. Its combined financial capacity may not be enough to make up for accumulated losses from a systemic risk event. Yet it has the intellectual capability and expertise in modelling and pricing risks, administrating risk transfer and handling claims. These cannot be ignored if we are to achieve a more effective and sufficient use of government support coming from the public side of this partnership,” he added. Wegener also told risk managers in Copenhagen that the world is in the early stages of what may be the economic greatest transition for societies since the industrial revolution. He said this will require many changes from businesses and risk managers, who have a real opportunity to step up to the plate. “Yes, that is going to be demanding but it’s also exciting, and we have a great contribution to make. Closing the protection gap is an important part of that,” he said. “Enterprise risk management is the bedrock, the foundation of this work, and risk leadership is our compass to achieving what we want for our greener and digital planet… This is a leadership moment. This is a risk leadership moment. Let’s seize it,” Wegener continued. He hopes that this year’s Ferma Forum can start to foster better partnership between risk managers and insurers, to help close the insurance protection gap and ensure companies can better navigate through choppy waters. “I wish that the 2022 Ferma Forum will be recognised in the future as a turning point in constructive dialogue that enabled us to start to close the protection gap and revitalise the full and long-lasting relationship between insurers and insureds, heading towards our joint of vision of a sustainable, green and digital world. Enjoy the challenge,” he said.

Wegener calls for more support from insurers on PPP solution

Collaboration needed to close protection gap

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