Insurance intermediaries can support governments, institutions, and individual clients in identifying practical ways to reduce the climate protection gap. By using advanced data analytics and risk modelling, they help improve the understanding of climate‑related risks, enabling insurers to price and underwrite risks more accurately. Over time, this improved risk insight supports the development of coverage that is both more sustainable and more affordable.

Positioned at the crossroads of risk assessment, modelling, structuring, capital markets and client engagement, intermediaries are well placed to link public and private actors. Their close relationships with households, SMEs and large corporates, combined with strong catastrophe and analytical expertise, allow them to contribute constructively to discussions on long‑term solutions, resilience and “build back better” approaches. As better risk understanding goes hand in hand with stronger risk prevention, protection gaps can progressively narrow.

BIPAR discussion paper on the role of insurance intermediaries in closing the climate protection gap

On 27 May 2026, BIPAR published a discussion paper aimed at supporting ongoing reflections and debates at EU level on how to possibly deal with NatCat protection gaps in the future.  The paper is intended to provide information to the European Commission and other policy makers in their work and study on “narrowing the climate-related protection gap”. It outlines key questions and provides information for further discussion and study.

There seems to be a clear political will to identify solutions that expand coverage for NatCat risks, particularly those that are currently uninsured. While some risks will remain or will become uninsurable from a climate risk point of view, some risks that are currently uninsured may become insurable over time, depending on how frameworks, legislations, rules and solutions are developed.

This document explains how intermediaries can contribute to this work, drawing on the expertise gathered within BIPAR’s Working Party and based on the input from specialists across relevant fields. It also clarifies how coinsurance and co-reinsurance work, which role intermediaries play in co-reinsurance and provides some definitions of key concepts linked to NatCat insurance.  This discussion paper also reaffirms BIPAR’s availability, via its network of experts, to assist policymakers in providing additional expertise in relevant fields, as needed.

Regarding the methodology used, this paper is based on interviews and discussions with BIPAR members and members of the BIPAR NatCat Working Party, complemented by definitions and desk research. This is absolutely not a scientific paper but rather a collection of real-life expert and practical insights.  It serves as a basis for further discussion and does not represent a formal BIPAR position.