LONDON, UK – MAY 2016 – Winter storms, major floods, earthquakes and hail storms are just some of the natural catastrophe events that have affected Europe in recent years. The economic impact of these events has, to varying degrees, been absorbed by insurance, governments and societies. This is because across Europe, there are significant disparities in terms of insurance penetration, catastrophe exposure and disaster preparedness.
In its latest Best’s Special Report, “Future Proofing: The Value of Natural Catastrophe Schemes in Europe”, A.M. Best considers the different approaches to catastrophe insurance in some of the largest European Union (EU) member states, and notes that natural catastrophe schemes have risen up the agenda as a result of a perceived increase in the frequency of natural disasters and growing awareness of the potential effects of climate change. Economic exposures grow in line with urbanisation trends and asset concentration. In several cases, the “protection gap” between economic and insured losses becomes evident as a consequence of fiscal budgets being under pressure combined with low insurance penetration in the population.
A full complimentary copy of this report is available via the following link:
A.M. Best Special Report: European Natural Catastrophe Schemes (in English)