The European Insurance and Occupational Pensions Authority (EIOPA), which oversees the regulation and supervision of the insurance and pensions sectors in the European Union, is seeking feedback on its consultation paper regarding the creation of an awareness tool.
This tool is intended to assist European citizens in understanding how vulnerable their properties are to natural hazards, the importance of having proper insurance coverage, and the steps they can take to prevent or reduce potential damage.
As climate change leads to more frequent and severe natural disasters—such as heatwaves, storms, floods, and droughts—both current and future homeowners face growing risks of property damage, which may result in higher insurance premiums.
For this reason, raising awareness about the impact of climate risks on properties has become a priority for both citizens and insurance providers.
EIOPA proposes the development of a tool that would help individuals across Europe assess the potential effects of climate change on their properties.
The tool would offer detailed information about the level of exposure a property faces to natural hazards, based on its geographical location, and suggest appropriate preventative measures for common hazards.
It would also provide insight into insurance coverage options, emphasising the importance of understanding exclusions in policies and outlining any national insurance schemes designed to address natural catastrophes.
EIOPA’s proposal focuses on the most frequent and damaging hazards in Europe, such as earthquakes, river floods, windstorms, wildfires, and coastal flooding.
The authority believes that enhancing citizens’ awareness of their risk exposure will help bridge the insurance protection gap for natural disasters within the EU and contribute to strengthening societal resilience to the ongoing challenges posed by climate change.
