[{"data":1,"prerenderedAt":75},["ShallowReactive",2],{"activity-en-10.1":3,"sector-for-en-10.1":48},{"id":4,"title":5,"activityCode":6,"activityType":7,"body":8,"description":34,"dnsh":35,"extension":36,"meta":37,"naceCodes":38,"navigation":40,"path":41,"sector":42,"seo":43,"stem":44,"substantialContribution":45,"__hash__":47},"activities_en\u002Fen\u002Fsectors\u002Ffinancial-and-insurance\u002Factivities\u002F10-1-non-life-insurance.md","Non-Life Insurance: Underwriting of Climate-Related Perils","10.1","standard",{"type":9,"value":10,"toc":29},"minimark",[11,16,20,23,26],[12,13,15],"h2",{"id":14},"substantial-contribution-to-climate-change-adaptation","Substantial Contribution to Climate Change Adaptation",[17,18,19],"p",{},"The insurance activity must underwrite policies covering climate-related perils including flood, storm, wildfire, hail, drought, and subsidence driven by climate change. The insurer must demonstrate that its underwriting approach contributes to climate adaptation through at least two of the following mechanisms.",[17,21,22],{},"First, the insurer must integrate forward-looking climate risk models that use climate projections consistent with IPCC scenarios (including RCP 4.5 and RCP 8.5) into its pricing and risk assessment. Traditional backward-looking actuarial models alone are insufficient; the risk assessment must account for non-stationary climate trends.",[17,24,25],{},"Second, the insurer must offer premium incentives, risk reduction services, or loss prevention guidance that encourage policyholders to implement physical adaptation measures (e.g. flood barriers, fire-resistant materials, drought-resilient landscaping, improved drainage systems). The effectiveness of these incentives must be tracked and reported.",[17,27,28],{},"Third, the insurer must contribute to climate risk data sharing and public risk awareness by participating in national or EU-level climate risk databases, publishing risk maps, or partnering with public authorities on adaptation planning. The insurer must report annually on the share of its portfolio exposed to climate-related perils, loss trends, and adaptation measures promoted to clients.",{"title":30,"searchDepth":31,"depth":31,"links":32},"",2,[33],{"id":14,"depth":31,"text":15},"Underwriting of non-life insurance products that cover climate-related natural catastrophe risks and promote climate adaptation.",[],"md",{},[39],"K65.12",true,"\u002Fen\u002Fsectors\u002Ffinancial-and-insurance\u002Factivities\u002F10-1-non-life-insurance","financial-and-insurance",{"title":5,"description":34},"en\u002Fsectors\u002Ffinancial-and-insurance\u002Factivities\u002F10-1-non-life-insurance",[46],"cca","714c3i3h5Y1jJ9az8zuADu0DHyXLDvwkBUNS3wSwII0",{"id":49,"title":50,"activityCount":51,"body":52,"description":65,"extension":36,"icon":66,"meta":67,"naceCodeRange":68,"navigation":40,"objectives":69,"path":70,"sectorNumber":71,"seo":72,"stem":73,"__hash__":74},"sectors_en\u002Fen\u002Fsectors\u002Ffinancial-and-insurance.md","Financial & Insurance",3,{"type":9,"value":53,"toc":63},[54,57,60],[17,55,56],{},"The financial and insurance sector occupies a distinctive position in the EU Taxonomy as a capital allocation mechanism. Rather than generating direct emissions, financial activities determine where investment flows -- making them powerful levers for accelerating the green transition.",[17,58,59],{},"Activities include non-life insurance and reinsurance for climate-related perils, lending for climate adaptation projects, and portfolio management that integrates Taxonomy criteria into investment decisions. The focus on climate change adaptation reflects the insurance industry's frontline role in pricing and managing physical climate risks.",[17,61,62],{},"Technical screening criteria for this sector emphasise the systemic importance of financial risk management. Insurers must demonstrate that their underwriting practices incentivise adaptation measures among policyholders. Lenders must apply Taxonomy-aligned criteria to their lending books, ensuring that financed activities meet the relevant technical thresholds. The sector's alignment is measured through metrics such as the Green Asset Ratio (GAR) for banks and the proportion of Taxonomy-aligned premiums for insurers.",{"title":30,"searchDepth":31,"depth":31,"links":64},[],"Insurance, reinsurance, and lending activities that channel capital toward climate-resilient and sustainable outcomes.","lucide:landmark",{},"K64-K66",[46],"\u002Fen\u002Fsectors\u002Ffinancial-and-insurance",10,{"title":50,"description":65},"en\u002Fsectors\u002Ffinancial-and-insurance","SyD-AufUMKDQ9WlZwq22IaSUbnky7dr87PMJXwKB5N0",1775591372940]