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Beyond regulation, demand for sustainable and long-term investment is significantly higher than the supply of appropriate assets, as shown by recent green energy/infrastructure projects that were oversubscribed. Action is also therefore needed to achieve the creation of suitable, sustainable investment opportunities.
This was the message from Insurance Europe’s president, Andreas Brandstetter, CEO and chairman of UNIQA Insurance Group, speaking at the 11th International Insurance Conference that takes place today in Bucharest.
Brandstetter said that insurers can contribute towards a more sustainable Europe in multiple ways: through stewardship, investment and divestment strategies, and co-investment with governments in key green infrastructure programmes.
Brandstetter also called on policymakers to help insurers refine the protection they offer against cyber-attacks, which are increasing in both frequency and severity. One of the main barriers to the development of the cyber insurance market is the lack of data on cyber risks. However, recent pieces of legislation that require companies to report cyber incidents to relevant authorities (eg, GDPR and the NIS Directive) have created a wealth of useful data.
Brandstetter also highlighted closing the pension savings gap as a key priority. This is another challenge where insurers can play a key role but requires EU policymakers to improve Solvency II, so that capital requirements reflect the real risks insurers face. This will enable them to offer the best possible returns to customers with long-term insurance savings products and, in turn, could help to address the growing pension savings gap by encouraging more people to save in private pension products.