1. A safer, unpolluted world
for future generations:
European insurers and climate change
Daniel Schanté
Director General
Comité Européen des Assurances (CEA)
ABI International Climate Change Conference
London, 29 June 2005
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2. Climate change
• I. Impact on insurance
• II. European institutions initiatives (examples)
• III. Reinsurance and insurance initiatives
• IV. CEA initiative
• V. CEA reflections
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3. I. Impact on insurance
Many insurance classes affected:
Property.
Health/life.
Agricultural insurance (animals, crops).
Construction.
Professional risks (business interruption).
Transport (marine and aviation).
Even motor.
Natural catastrophe losses:
Economic loss
Insured loss
$60 $145
bn $44
bn
$15 bn
bn
2003 2004
3 Source: Munich Re, Topics Geo 2003 and 2004

4. II. European institutions initiatives (examples)
European Climate Change Programme (ECCP)
March 2000
Approval of the Kyoto Protocol on climate change
Council Decision April 2002
The European Union Solidarity Fund
Council Regulation November 2002
Greenhouse gas emissions allowance trading scheme
Directive of the European Parliament and of the Council October 2003
Communication from the Commission “Winning the battle against global
climate change”
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5. III. Reinsurance and insurance initiatives
Reinsurers’ initiatives (1)
Publication of communication papers.
Participation in initiatives aimed at reducing the emission of
greenhouse gases.
Participation in worldwide projects (cooperation with IPCC -
Intergovernmental Panel on Climate Change and UNEP - United
Nations Environment Programme …).
Search for new products, new technical tools in order to estimate
potential losses.
Insurers’ initiatives linked to natural events
Existing systems in terms of natural catastrophe cover
Involvement in climate change issues.
5 (1) Swiss Re and Munich Re

6. Natural catastrophe cover schemes
STATE INTERVENTION:
State imposes cover as an
extension to a basic
contract:
Switzerland
State pays compensation
for loss or damage:
Denmark, Netherlands
State intervenes both
ways:
Belgium, Spain, France,
Norway
NO STATE
INTERVENTION:
Austria, Czech Republic,
Germany, Finland, United
Kingdom, Greece, Italy,
Poland, Portugal, Sweden
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7. Insurers’ initiatives linked to climate
change issues
Various initiatives: UK
Insurance project: Italy
Mapping and zoning
(floods):
Austria, Czech Republic,
Germany, Poland (also Italy)
Agreement between
household insurers and
construction sector insurers:
France
Studies/academic
projects (support or funding):
Spain, Norway,
(also Austria, Poland)
Awareness:
Switzerland, Denmark,
Greece
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8. IV. CEA initiative
Questionnaire on natural event cover for individuals.
Three relevant points:
Compulsory versus optional insurance.
Penetration of the insurance cover for each type of risk.
Available reinsurance in the different countries.
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9. V. CEA reflections
1) Limitations of traditional insurance.
2) Priority: mitigation and adaptation.
Need for prevention measures to be taken:
Sustain the Kyoto Protocol
Promote renewable energies.
Use of geographical information systems.
Early warning system.
Flood control programs.
Building codes (wind-resistant construction techniques).
3) Partnerships between governments/European institutions
and the private sector.
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10. Beyond worrying about
who will bear
the cost
of climate change,
public authorities, business and insurers
should concentrate on
prevention.
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11. orld
ted w
pollu
r , un ions!
safe e ra t
A
e ge n
fu tu r
fo r
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12. www.cea.assur.org
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