The Federation’s Contribution focuses on economic security, the net-zero transition and cyber resilience, and highlights the need to address the insurance gap

DOWNLOAD IT HERE

Brussels, 13 January 2025 – FERMA has today published its Contribution to the Polish Presidency of the Council of the EU, urging the Presidency to recognise the contribution of risk management to building a more prepared, resilient and competitive EU economy.

The Polish Presidency is taking place at a decisive moment, as the EU addresses challenges on multiple fronts, including maintaining competitiveness while the economy undergoes a green transition and ensuring economic security against a backdrop of natural catastrophes, geopolitical instability and hybrid threats.

In its Contribution, FERMA identifies three policy areas where the risk management community can support the Presidency’s in delivering on its priorities.

Bolstering economic security

Highlighting growing supply security concerns, FERMA calls upon the Polish Presidency to capitalise on the unique risk management expertise within its network when developing the European Preparedness Union Strategy. The Federation also proposes enterprises are provided with tools to prepare for supply shocks, including a comprehensive Europe-wide risk management training capability based on FERMA’s risk management certification program rimap®.

FERMA recognises the Polish Presidency’s commitment to regulatory simplification as part of its focus on EU competitiveness. However, it recommends the increased use of risk-based concepts, as was done in the Artificial Intelligence Act or Corporate Sustainability Reporting Directive, adding that clear and simple rules support competitiveness, while robust risk assessments lead to better decision-making.

Enabling the net-zero transition

Addressing the shift to a climate-neutral economy, FERMA highlights the critical role of insurance but notes that private insurance coverage for transition-related risks is currently insufficient to meet demand, forcing companies to choose between maintaining competitiveness and meeting climate goals.

FERMA therefore welcomes the Presidency’s efforts to find solutions to support the transition, including financial mechanisms, and believes addressing climate protection gaps should be a priority. It recommends establishing a Commission-led expert group to explore an EU public-private reinsurance scheme to tackle the insurance shortfall, as proposed by EIOPA and the European Central Bank.

Strengthening cyber resilience

Acknowledging the Presidency’s commitment to cybersecurity, FERMA believes resiliency efforts must extend beyond critical infrastructure, calling for a push for higher standards of cybersecurity to increase EU-wide cyber risk management.

Once again, the Federation notes a gap in insurance coverage and urges the Presidency to ensure that cyber insurance is included in a review of the EU cybersecurity strategy, while proposing the establishment of an EU cyber reinsurance pool to provide financial support to enterprises in the event of a catastrophic cyber incident.

Charlotte Hedemark, President of FERMA, said: “FERMA welcomes the commitment of the Polish Presidency to boosting the competitiveness of the EU and is dedicated to supporting efforts to bolster the resilience of the economy. The risk management community can and must play a key role in driving meaningful momentum across the critical areas of economic security, net-zero transition and cyber resilience.”