EIOPA Publishes Report On Impact Underwriting

EIOPA has published its report on "impact underwriting", i.e. the ability of insurers to contribute to climate change adaptation by means of underwriting practices, thereby incentivising policyholders to take climate-related adaptation measures.

The report is the result of a pilot exercise conducted with volunteer insurers in 2022. The pilot was also motivated by the technical screening criteria for non-life insurance to be eligible as climate change adaptation under the EU Taxonomy Regulation (which requires risk-based incentives for policyholders who undertake risk prevention measures, such as reduced premiums or deductibles).

Adaptation measures in this context range from sandbags for flood damage prevention, to domestic "green roofs", alarms, early warning systems for adverse weather conditions, heat or fire-resistant building materials and property risk assessments. EIOPA's focus is on structural measures and services that can be implemented by the