From payout to prevention: making insurance work for Europe's climate resilience
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EIOPA article on Europe's natural catastrophe protection gap, where only around 25% of losses are insured. It reviews its tools, such as the protection gap dashboard and the proposed PROTECT tool, and argues for shifting from payouts to prevention.
Key points
- Each of the past four years ranks among the five costliest for climate-related losses since 1980
- Low take-up stems from risk misperception, price and expectations of state compensation
- PROTECT would help citizens understand their properties' vulnerability and how to prevent damage
Who is affected
Insurers, households, public authorities
Plain-language version
In Europe only about 25% of losses from natural disasters are insured. EIOPA, the EU watchdog for insurers and pension plans, explains that many people skip insurance because they underestimate the risk, because of the price or because they expect public aid. It proposes PROTECT, a tool to show how vulnerable your home is and how to prevent damage.
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Summary produced with artificial intelligence from the official publication. It may contain errors: always check the original document.
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