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.

Given the increase in the severity and intensity of climate related events, public authorities are mainly responsible for climate change adaptation. However, insurance intermediaries play a pivotal role in contributing to climate adaptation, as many have expertise in the modelling of climate risk and the development of resilient and sustainable business models. Intermediaries also have a role in raising awareness of climate risks, in covering new risks (especially for SMEs), preventing a possible "protection gap/insurance gap" by developing adapted and innovative insurance solutions.