Kurt Vandenberghe, the European Commission’s Director-General for Climate Action, put the new orthodoxy in a single sentence this month. Posting after a round table with Europe’s insurers on closing the “climate protection gap”, he declared that “insurance as usual will not be sustainable”. Climate policy, he argued, is now effectively insurance policy too: whatever risk insurers decline to cover becomes uninvestable. According to Vandenberghe, a widening protection gap threatens a looming financial-stability problem for the whole European Union.
In April, the Financial Times pushed the same idea, reporting that EU insurance, pensions and financial regulators want a Brussels-backed fund of €10 billion–€65 billion for natural and climate disasters “to close the bloc’s insurance gap for floods, wildfires, heatwaves and storms”. The figures behind the pitch are stark: only €4.5 billion of the €11 billion in losses from the 2024 Valencia floods were insured; only €13 billion of the €51 billion in losses from the 2021 Ahr valley floods were covered. Natural catastrophes, the regulators said, caused more than €900 billion in damage across the EU between 1981 and 2024 – “only a fraction” of it insured.
Brussels has decided that Europe’s storms and bad weather need a new bureaucracy. The Financial Times report drew on a joint discussion paper published that same day by the European Insurance and Occupational Pensions Authority. It proposed a continent-wide natural catastrophe insurance pool, backed by a loan facility of up to €65 billion, that would supposedly shrink Europe’s “insurance
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You just know it will become the usual gigantic slush fund shovelling money from workers to lanyard wearing grifters in Europe’s centres of power.
Very well written piece which destroys beyond any doubt the EU scam involved here.
The EU is simply trying to add to its totalitarian powers by creating yet another pot of money to be allocated according to its own political wants and self interested avarice. As with almost everything, insurance done by government will be grossly wasteful, inefficient, ineffective and incompetent.
It is nice that they already insure us all against damage from govenment mandated injections (not).
This bold faced racketeering will later be used as evidence that capitalism and free markets don’t work.
Really like some one taking a baseball bat every so often to a machine and then claiming it doesn’t work properly
“That’s a nice climate you got there. Be a shame if anything happened to it.” Said the tough from Brussels.
The protection
gapracket.