Paper draws attention to the ‘cyber insurance gap’ and ongoing treatment of captives under Solvency II

FERMA has issued a paper on the role of risk management in support of the priorities of the Czech Presidency of the Council of the European Union.

The Czech Presidency began on 1 July and continues until 31 December.

Dirk Wegener, FERMA President, commented: “Our paper outlines the views and concerns of risk managers on matters that will be debated during the Czech Presidency. 

”FERMA offers its unique expertise in risk and insurance management to support EU policymakers enhance the resilience of the EU economy and the cyber security of the continent.”

Time to tackle cyber gap 

In the paper, FERMA presents the challenges faced by European businesses and explains how risk management “savoir-faire” can contribute to the objectives of the Czech presidency. It also highlights some key considerations from European risk managers - notably the cyber insurance gap and treatment of captives under solvency II.

The European risk association is optimistic the Czech presidency can make solid progress on the general approach to the Cyber Resilience Act (CRA) initiative. It is also important that there is work on a more holistic approach at EU-level to cyber resilience, it adds.

FERMA draws attention to the growing concern of risk managers regarding the cyber insurance coverage gap and notes that cyber threats continue to be the main concern for risk managers.

It believes insurance coverage gaps should be higher on the agenda of policymakers.

”We are convinced there is a link between closing these gaps and enhancing the resilience of the EU economy,” it concludes. “On this matter, FERMA looks to the Czech presidency to carry Solvency II over the finishing line. In particular, FERMA hopes there is a more proportionate prudential regime for captives.”