The Federation of European Risk Management Associations (FERMA) has urged the European Commission to adopt a collaborative approach to the climate resilience framework it plans to unveil later this year, calling for coordinated risk management action across governments, insurers, capital markets and businesses.
In its response to the Commission's public consultation – which closed on February 23 – FERMA said climate-related risks could not be managed by companies alone and that resilience required coordinated action at EU, national and local levels.
The Commission's European Climate Resilience and Risk Management – Integrated Framework is expected in Q4 2026. It combines legislative and non-legislative measures and aims to establish what the Commission has described as a more comprehensive EU approach to climate resilience and preparedness.
The initiative, led by Commissioner Wopke Hoekstra, builds on the EU Adaptation Strategy adopted in 2021 and responds to calls from the European Parliament and the Council for bolder action.
A European Climate Risk Assessment published by the European Environment Agency (EEA) in March 2024 identified 36 major climate risks facing Europe, forming the scientific evidence base.
In December 2025, the EU Council adopted conclusions urging accelerated climate resilience action, calling for common definitions and methodologies for risk assessments across member states.
FERMA pointed to figures showing that only about 25% of climate-related losses in Europe are currently insured. EEA data paints an even starker picture: weather- and climate-related extremes caused estimated economic losses of EUR 822 billion across the EU between 1980 and 2024, with less than 20% privately insured over that period.
Research from WWF quantified the EU's annual protection gap at EUR 59 billion per year between 2021 and 2023.
The gap varies dramatically by country and peril. EEA figures show insurance coverage ranges from less than 3% in countries such as Bulgaria, Romania and Croatia to over 35% in Belgium, Denmark and France.
Over 35% of meteorological losses were insured, but this dropped to around 15% for hydrological events and just over 10% for climatological perils such as heatwaves and droughts.
Laurent Nihoul (pictured above), FERMA CEO, said natural catastrophes were systemic risks that no single actor could absorb alone.
"Effective public-private partnerships are no longer optional," Nihoul said, describing a collaborative model as "the only sustainable way to respond to NATCAT risks".
The federation backed a European public-private reinsurance mechanism, as proposed by the European Central Bank and EIOPA, to pool risks and stabilise capacity. EIOPA has warned that rising physical risk management exposures could reduce both the affordability and availability of climate-related insurance products in the medium to long term.
A February 2026 report from the Geneva Association examined 14 existing public-private insurance programmes and found persistent challenges including heavy financial liabilities and insufficient incentives for risk reduction.
Geneva Association managing director Jad Ariss said such programmes needed to become "resilience engines – reinforcing prevention, strengthening incentives to reduce exposure, and helping societies recover faster".
FERMA also called for access to consistent, localised climate data and recommended that climate resilience screening and stress testing become standard in public procurement, infrastructure planning and EU-funded projects.
Investment in predictive modelling, digital twins and resilient infrastructure could position European firms as leaders in resilience solutions, the federation said, provided stable regulations and scaled-up finance followed.
