FERMA suggests EU resilience framework for non-physical cat risks

The Federation of European Risk Management (FERMA) has called on the European Commission to create a resilience framework for catastrophic risks, in an effort to address the shortage of business interruption insurance without physical damage (NDBI).

FERMA says its resilience framework would have the flexibility to respond to a range of catastrophic events, such as pandemic and massive cyber-attacks, that can create severe business losses without physical damage.

“We now aim to deepen discussions with the EU, the Member States and the insurance sector, and to develop solutions for both short-term crisis management and long-term business resilience,” said FERMA President Dirk Wegener said.

“FERMA members have expertise and experience in the field of business interruption that we want to contribute to the future resilience of European business.”

The resilience framework proposed by FERMA would function on four levels:

Enterprise-level risk management: anticipation, prevention, identification and mitigation of risks; transfer of risk to private insurance and reinsurance markets, developing enhanced coverage for NDBI; National Member…