ESG & Investing
Europe’s Insurers May Face New Capital Rules for Climate Risk
- EIOPA recommends updates for assessing natural disasters
- Goal is to ensure ‘continued protection for policyholders’
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Europe’s insurance watchdog has called for a recalibration of capital requirements to reflect rising climate-driven disasters across the continent.
The European Insurance and Occupational Pensions Authority is recommending the industry update the way it accounts for natural catastrophe risks in standard formula calibrations, according to a statement on Thursday. EIOPA said its recommendations are based on a two-year “comprehensive reassessment exercise” that examined the heightened risks associated with floods, windstorms and other weather-related perils.