Insurance Europe has today published its response to a discussion paper by the European Insurance and Occupational Pensions Authority (EIOPA) on non-life underwriting and pricing in light of climate change.
The concept of "impact underwriting" is not sufficiently well-defined
to assess what effects it could have on the availability and
affordability of insurance. What is clear, however, is that a more
proactive approach to climate change, prioritising prevention, risk
reduction and resilience building, is essential for maintaining
insurability and affordability.
Focusing only on pricing and deductibles will not constructively
contribute towards tackling challenges and improving climate change
adaptation, mitigation and prevention. Coordinated industry solutions
and public/private partnerships, however, do have an important role to
play.
Insurers, in addition to transferring and pooling climate
change-related risks, also contribute to reducing exposures to climate
risks through the features of their products and their investment
strategies.
It is also important to note that the assessment and pricing of risk
must remain exclusively risk-based and any changes to the regulatory
response
Insurance Europe
© InsuranceEurope
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