The European Commission presents a framework for climate resilience and prepares a European Climate Insurance Alliance to reduce losses that are currently uninsured. According to its estimates, climate damages cost around 50 billion euros annually between 2022 and 2025.
According to mutuas-seguros.es, the European Commission has presented a European framework for climate resilience that aims to create a European Climate Insurance Alliance. The goal is to reduce economic losses that currently lack insurance coverage, with measures to anticipate risks, adapt infrastructures, and expand protection against natural disasters.
The Commission estimates that climate damages caused losses of nearly 200 billion euros in Europe between 2022 and 2025, about 50 billion per year. Estimates from European authorities indicate that only a quarter of those losses are insured, with the rest falling on the affected parties, administrations, or other compensation mechanisms.
The alliance will bring together insurers, public administrations, risk management experts, and other economic agents. Its focus will be on territories and activities where exposure to risk makes affordable coverage expensive or impossible. It is still in the development phase: the Commission has not set a mandatory European compensation system nor defined its funding or the conditions for future coverages.
Insurance Europe, the federation of the European insurance sector, has positively assessed the framework, although it argues that prevention should be a priority. Its president, Frédéric de Courtois, points out that the extreme climate events of summer 2026 demonstrate the need for collective action in both the short and long term. Its general director, Thea Utoft Høj Jensen, believes that the alliance will leverage insurers' technical knowledge to reduce the coverage gap.
The framework includes a proposal for a European Climate Resilience Law to coordinate member states. The Commission will use a global warming reference of 1.5 degrees by 2030, 2 degrees by 2050, and 3 degrees by 2100, in order to assess future risks and investments. Additionally, it plans a strategy against heatwaves, initiatives regarding water, and a programme to identify the hundred most vulnerable European areas to climate change.
The legislative proposal must follow the European approval procedure, so the announced measures are not yet binding legal obligations.
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