On 10 December, EIOPA published a discussion paper on non-life underwriting and pricing in light of climate change, as a follow-up to its opinion on sustainability within Solvency II, where EIOPA noted that a very common argument for non-life undertakings not to include climate change-related risks in their pricing methodology is the short-term duration of contracts allowing to re-price annually.
The paper is meant to highlight the challenges stemming from current non-life underwriting and pricing practices and the options available to ensure the availability and affordability of insurance products, in the context of climate change.
Insurance Europe response – draft