EU insurers making ‘important progress’ in the integration of climate change considerations into risk assessments

Written by Adam Cadle

25/07/2025

EU insurers have made important progress in integrating climate change-related risks into their risk management frameworks, EIOPA has stated.

EIOPA has issued a public statement on the findings of a monitoring exercise exploring how (re)insurers in Europe are integrating climate change-related risks in their Own Risk and Solvency Assessment (ORSA). Most insurer in the scope of the exercise now include climate change risk assessments in their ORSAs, covering both physical and transition risks.

The (re)insurers surveyed are also making greater use of scenario analysis to assess the potential financial impacts of these risks. In a growing number of cases, climate change assessments are linked to defined management actions and are being taken into account in strategic decision-making.

The exercise has also highlighted important challenges, including significant variations in approaches across jurisdictions, limited availability of high-quality, reliable and granular data, and the difficulty of extending the time horizon of analyses beyond what is typical for ORSA.

The exercise follows EIOPA’s 2021 Opinion on the supervision of climate change risk scenarios in ORSA, as well as a related application guidance aimed at establishing consistent practices.

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