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The association that represents insurers and reinsurers in Europe, Insurance Europe, has welcomed a European Commission green paper on the insurability of natural and man-made catastrophes, but it also said that the two types of disasters require different insurance approaches.
In its response Tuesday to the European Commission green paper on insurance of natural and man-made disasters, Brussels-based Insurance Europe called for insurers to have access to more sophisticated risk data, for greater cooperation between interested parties to reduce the impact of disasters, and the minimization of state intervention in markets where risks are insurable.
The association also said natural catastrophes and man-made disasters should be dealt with separately as their insurability differs, among other things.
“With large-scale disasters continually affecting economic stability and growth in Europe, Insurance Europe welcomes the European Commission’s efforts to enhance disaster risk prevention and mitigation across the European Union,” Michaela Koller, director general of the association, said in a statement.
The green paper was intended to launch a discussion between stakeholders, to raise awareness, and assess whether E.U. intervention is needed to improve the market for disaster insurance in Europe.
The paper said there were cases where disaster insurance markets “do not seem to cope fully with existing risks.”
The European Commission asked respondents to consider the merits of mechanisms such as government-backed pools and insurance-linked securities, among other things.