Catastrophe bonds and other private market risk-transfer tools are essential to help Europe’s agriculture sector manage mounting climate risks, according to Howden, as annual weather-related losses are expected to rise to €40 billion by 2050.
The recommendation comes from a report published by the European Commission and European Investment Bank (EIB), featuring analysis and proposals by international broker Howden and Karlsruhe-based risk modelling firm RiskLayer GMBH.
The study, titled ‘Insurance and Risk Management Tools for Agriculture in the EU’, finds that the EU agricultural sector currently suffers €28 billion in average annual losses from extreme weather, with farmers bearing 70–80% of all weather-related farm losses, highlighting a significant insurance protection gap, as just 20-30% of losses are insured, leaving farmers and public finances highly exposed.
FULL ORIGINAL PUBLICATION HERE
