Paper aims to improve insurance coverage in the EU
The European Commission (EC) has launched a consultation on its Green Paper on the insurance of natural and man-made disasters.
The paper was drawn up following a study into natural catastrophes in Europe, which revealed a marked rise in the number of catastrophe events between 1980 and 2011.
The EC consultation focuses on ways to improve catastrophe insurance coverage for EU member states. Suggestions in the Green Paper include risk pooling and mandatory insurance or reinsurance for member states.
Other areas for consideration are parametric index-based weather insurance (PIBWI) and other innovations aimed at improving insurance policies.
Under PIBWI, payments from a policy are based on deviations from a pre-defined weather index in the event of extreme weather and is not dependent on actual losses incurred.
Responses to the consultation must be received by 30 June.
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