EIOPA recommends updates to standard formula capital calibrations for natural catastrophe risks in insurers

Article summary

The European Insurance and Occupational Pensions Authority (EIOPA) has recommended updates to the standard formula capital calibrations for natural catastrophe risks in insurers, following a reassessment exercise using new scientific insights, climate data, and risk modelling. EIOPA proposes adjusting risk factors for perils such as floods, windstorms, hail, earthquakes, and subsidence for certain regions and expanding the number of countries considered. The Opinion EIOPA has published follows a consultation process on the proposals arising from the reassessment exercise. The proposals have been submitted to the European Commission for consideration.