FERMA has announced its support for a joint proposal by the European Insurance and Occupational Pensions Authority (EIOPA) and the European Central Bank (ECB) to establish a European public-private reinsurance scheme aimed at mitigating the impact of natural catastrophes.<\/p>\n
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The proposal outlines a two-pillar EU-level solution designed to close the widening insurance protection gap for natural catastrophe risks. A key element is the creation of a public-private EU reinsurance scheme to reduce economic exposure to such events.<\/p>\n
The scheme would be funded through risk-based premiums paid by re\/insurers or national insurance systems. FERMA supports this model, stating that risk-based pricing promotes risk awareness, encourages prevention, and reinforces best practices already adopted by private re\/insurers and their corporate clients.<\/p>\n
FERMA also believes that a dedicated EU-wide reinsurance pool would help restore pricing sovereignty, reduce volatility, and enhance stability in insurance costs\u2014benefiting businesses, insurers, and consumers.<\/p>\n
To support the initiative\u2019s success, FERMA outlined several key considerations. These include the need for reliable, consistent data to ensure accurate risk assessment, fair premium setting, and effective claims handling.<\/p>\n
It also stressed that a diverse and sufficiently large EU pool is essential to avoid disproportionately high premiums. FERMA recommends further studies to determine the optimal scale for risk diversification and pricing stability, and calls for a framework that ensures meaningful private sector participation.<\/p>\n A stable and clearly defined legal framework is also necessary to provide certainty around contractual obligations, claims processing, and dispute resolution. However, FERMA cautions against introducing unnecessary administrative burdens or added costs.<\/p>\n To ensure long-term viability and ongoing private sector engagement, FERMA highlights the volatility caused by annual renewals and recommends incorporating mechanisms to assess returns over multi-year periods to promote market stability.<\/p>\n It also calls for structured, ongoing consultation with policymakers, re\/insurers, and risk managers throughout the scheme\u2019s development. Additionally, it suggests that the governance structure clearly define the roles and responsibilities of EU entities, national schemes, and private sector participants to avoid unintended competition.<\/p>\n Finally, FERMA urges that the scheme be used to incentivise and fund risk prevention and mitigation efforts, helping to ensure sustainable, long-term support for natural catastrophe damage compensation.<\/p>\n The post FERMA supports EU proposal for nat cat reinsurance scheme<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" FERMA has announced its support for a joint proposal by the European Insurance and Occupational Pensions Authority (EIOPA) and the European Central Bank (ECB) to establish a European public-private reinsurance scheme aimed at mitigating the impact of natural catastrophes. The proposal outlines a two-pillar EU-level solution designed to close the widening insurance protection gap for […]<\/p>\n","protected":false},"author":1,"featured_media":3310,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"_links":{"self":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/3308"}],"collection":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/comments?post=3308"}],"version-history":[{"count":3,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/3308\/revisions"}],"predecessor-version":[{"id":3312,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/3308\/revisions\/3312"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/media\/3310"}],"wp:attachment":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/media?parent=3308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/categories?post=3308"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/tags?post=3308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Download](\"http:\/\/calebdewey.com\/wp-content\/uploads\/2025\/04\/catastrophe-bond-ils-market-report-q1-2025-728x90-2.png\")
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