MEP César Luena (S&D) has asked the European Commission to outline its plans for an EU-wide mechanism to pool natural disaster risks, following a joint proposal by the European Insurance and Occupational Pensions Authority (EIOPA) and the European Stability Mechanism (ESM). The question, submitted on 14 April 2026, seeks to close the gap between economic losses and insured losses from natural disasters, which remains significant in several Member States.
Luena's written parliamentary question (E-001517/2026) requests details on the Commission's intentions, including whether it plans to establish such a mechanism and what options it is considering—such as a voluntary pool, participation of national schemes, or a backstop model based on loans for extreme events with an estimated capacity of between EUR 10 billion and EUR 65 billion. He also asks about the role envisaged for competent European authorities.
The MEP further inquires how the Commission intends to coordinate this potential initiative with climate adaptation and risk prevention policies, to ensure that broader insurance coverage does not replace risk reduction or create negative incentives. The question reflects concerns that without proper safeguards, a pooling mechanism could inadvertently reduce incentives for Member States to invest in prevention and resilience.
As a parliamentary question, the Commission is expected to respond within approximately six weeks. The answer will signal the Commission's policy direction on this emerging issue, which could have significant implications for insurers, national disaster schemes, and EU taxpayers. The proposal aims to address a market failure where private insurance coverage for natural disasters is low in some regions, leaving many losses uninsured. However, critics caution that a common pool might lead to moral hazard, where countries with higher risk profiles benefit at the expense of lower-risk ones. The Commission's response will be closely watched by stakeholders in the insurance sector, national governments, and climate adaptation advocates.