The Federation of European Risk Management Associations (FERMA) has announced the launch of a taskforce to create proposals to address the issue of business interruption coverage for catastrophic risks.
“Our aim is to support the creation of economies that are resilient in the face of systemic and catastrophe risks,” said the President of FERMA, Dirk Wegener
The task force, made up of senior risk managers from FERMA members, plans to publish its initial results by the end of May.
FERMA and the member associations want to open a dialogue with all relevant stakeholders, including EU institutions, insurers and brokers, and government bodies.
The aim is to create a solution that provides cover for non-damage business interruption for all types of catastrophe risks, not just pandemic.
“FERMA’s member associations are composed of people with great knowledge of business risk management and business insurance,” Wegener continued. “We intend to draw on that expertise to make concrete proposals to form the basis of discussions with stakeholders.”
FERMA argues that the impact of catastrophe events, like the current pandemic, are beyond the resources of the private insurance industry and enterprise risk management alone.
“Any catastrophe mechanism for business interruption must be able to respond to various types of disaster, address the complexities of catastrophes and avoid the pitfalls of existing schemes,” Wegener added.
