The European Insurance and Occupational Pensions Authority (EIOPA) and the European Stability Mechanism (ESM), have announced a proposal for a Europe‑wide risk‑sharing framework to address the natural catastrophe insurance protection gap while safeguarding private‑sector involvement.
Released on 9 April 2026, the proposal arrives at a pivotal moment, as escalating climate driven losses and mounting affordability pressures threaten the access to insurance in high-risk regions.
From a credit perspective, Morningstar DBRS sees the initiative as incrementally positive for the private insurance sector, particularly as it is designed to complement existing national schemes rather than replace them.
FULL ORIGINAL PUBLICATION HERE