On 12 February, EIOPA released a Staff paper on measures to improve the insurability of business interruption risk in light of pandemics (here). As EIOPA acknowledges in its opening remarks in the document, this paper is the culmination of several months work with its Exploratory Group—of which FERMA is a member, with Insurance Europe and Bipar.
In the paper EIOPA presents its analysis of options and potential building blocks as options to build up business interruption coverage in the future. While the scope is limited to ‘pandemic risks’, among the considerations presented by EIOPA is an analysis of multi-peril cover. EIOPA also analyses prevention measures and alternative risk transfer mechanisms (e.g. capital markets). EIOPA is seeking stakeholder input on the paper by 31 March.
On top of FERMA’s contribution through the Exploratory Group meetings chaired by EIOPA, the Staff Paper also cites our COVID-19 survey, underlining the importance of this kind of work by FERMA. Our positive and proactive contribution has helped shape an important outcome with this paper, which is hoped will influence the European Commission in its deliberations on the topic.
FERMA has already contacted the European Commissioner for Financial Services Mairead McGuinness raising the possibility to meet and discuss the broad topic of resilience.