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European cat bond grant proposals set to be welcomed?

As we reported back in April, the European Central Bank (ECB) and the European Insurance and Occupational Pensions Authority (EIOPA) have highlighted the use of catastrophe bonds as critical to support the supply of catastrophe insurance and reinsurance across the region, while also proposing issuance is brought closer to home.

While traditional insurance and reinsurance solutions, as well as public-private partnership measures are also seen as key, the ECB and EIOPA said that a greater use of catastrophe bonds can help to mutualise climate and catastrophe risk into the capital markets, benefitting European Union countries.

Asking for comments to their discussion paper, the ECB and EIOPA also said that policy measures could be taken, including the provision of incentives such as we see in other domiciles, such as ILS grant programmes seen elsewhere, as well as more efficient and fast regulatory processes.


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