Risk management federation calls on EU for better climate related risk data access

The Federation of European Risk Management Associations (FERMA) has responded to a public consultation on the European Union’ Strategy on Adaptation to Climate Change by calling for better access to climate related risk data.

The position paper suggested that in order to increase the resilience of organisations the future EU climate change strategy should include their practical recommendations. The recommendations suggest expanding public access to climate related risk data across the EU to help decision makers’ and insurers. This can be achieved through data sharing from private organisations and member states regarding all climate related incidents.

FERMA CEO Typhaine Beaupérin explained that few national databases have up to date risk data. “There is a great added value for an EU action in terms of facilitating the development of a broader range of risk financing solutions to secure their availability and affordability in the next decades,” she said.

Additionally, the other practical recommendations included promoting risk management practices within businesses and public entities, and helping companies access options to handle climate related financial risks. This paper stated that this can be achieved through raising awareness and support through sharing dialogue between the insurance market and public authorities.

FERMA president Jo Willaert added that organisations will have an accurate view of their risk exposure which will help their decision making for prevention and protection. The paper also stated that corporate risk and insurance management could help organisations adjust to climate change and recommended that the EU should encourage investment in resilience and risk pricing through the insurance market.

The European Commission will report to the European Parliament by the end of 2018 on the state of implementation of the EU Adaptation Strategy, with policy recommendations.