Insurance Innovation Can Bridge the Climate Adaptation Gap

By Salvatore Cimino

Insurance experts, researchers and practitioners explored how the profession can shift from reactive coverage to proactive resilience-building
The Day 2 session ‘Innovative Climate Insurance Solutions for Shared Resilience’ tackled pressing issues such as preventing risk, climate data harmonisation and stakeholder engagement through measurable KPIs.

Insurance as a driver for adaptation

“Portugal has one of the highest burned areas in Europe,” noted Heikki Tuomenvirta from the Finnish Meteorological Institute. A new wildfire pilot project there is testing how insurance modelling can incorporate adaptation incentives. By simulating probabilistic fire spread using environmental data and actuarial models, the project aims to design insurance products that reward prevention and can be replicated across countries. He described insurance as not just compensation but a lever for change.

Oleksandr Sushchenko, from the Helmholtz Centre for Environmental Research, presented a Valencia case study showing how quantifying resilience can directly influence urban planning. “The only way to engage and get everyone at the table is to discuss Environmental, Social, and Governance Key Performance Indicators (ESG KPIs) that are clear, common and relevant for everyone,” he said.

Using a participatory, evidence-based approach, his team developed a matrix to measure infrastructure and climate resilience - providing a framework cities can use to guide investments, policies, and partnerships.

Data as a catalyst for insurance innovation

Laura Trentini, from the AMIGO project, stressed the importance of data harmonisation. Through the PIISA initiative (Piloting Innovative Insurance Solutions for Adaptation), they are supplying high-quality, standardised risk data - including novel indices for drought, wind and convective storms - to European platforms such as Risk Data Hub.

Their tools include a clay soil risk assessor and the Climate Dryness Index, developed to help municipalities and farmers understand their exposure and act accordingly. As Trentini put it: “Data is not just information - it’s the foundation for transparency, trust and action.”

Insurance alone is not enough

Sina Ruhland (also from Helmholtz) reminded the audience that climate resilience requires shared responsibilities and central coordination. The adaptation gap - between what needs to be done and what is being done - is wide. Insurance alone cannot close it, but it can help bridge it when integrated into broader strategies.

Many communities, especially small ones, still rely on government aid rather than insurance. Clear communication, especially with vulnerable groups like farmers, is key: adaptation must be explained in simple, actionable terms. Programs such as premium incentives for sustainable practices are part of the solution.

Toward a resilient, connected Europe

The session underlined that while challenges remain - such as data gaps, regulatory hurdles and limited public awareness - solutions are emerging. Insurance can be redesigned not just to transfer risk, but to transform it, enabling long-term resilience and equitable adaptation.

Chair

Oihana Luque (Icatalist)

Speakers

Heikki Tuomenvirta, Finnish Meteorological Institute
Oleksandr Sushchenko, Helmholtz Centre for Environmental Research
Laura Trentini, AMIGO S.r.l.
Sina Ruhland, Helmholtz Centre for Environmental Research

Join in the debate with your comments and reactions: Use #ECCA2025 at LinkedIn: MAGICA Climate project and X: @JPIClimate and @ECCA_Conference
Useful links: PIISA Project, PIISA Project tool

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