EU to launch climate insurance alliance after extreme summer

The European Union plans to create a “climate insurance alliance” to help people and businesses get more coverage against extreme weather such as wildfires, heatwaves, droughts and floods. EU Commission President Ursula von der Leyen said only about a quarter of climate-related economic losses in the bloc are currently insured, leaving governments to cover much of the damage.

The alliance will bring together insurers, investors, governments and other experts to develop ways to expand coverage, including group insurance and policies that automatically pay out when conditions such as extreme temperatures or rainfall reach certain levels.

The EU also plans new measures to improve climate preparedness, including a climate resilience strategy for vulnerable regions, stronger heatwave warnings and better drought management. The bloc is also considering ways to improve wildfire response, including potentially creating an EU firefighting fleet.

EU to launch climate insurance alliance after extreme summer – CGTN Credit : CGTN