PIISA: European research on how insurers can contribute to climate adaptation

What can insurers do to increase the success of nature-based adaptation measures?

Customer
Location
Duration
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European Union
Europe
2023-2026

PIISA: European research on how insurers can contribute to climate adaptation

What can insurers do to increase the success of nature-based adaptation measures?

Customer
Location
Duration
Read more
European Union
Europe
2023-2026

The benefits paid out by non-life insurers to customers in Europe are often related to water damage and extreme weather. Due to the changing climate, the risks of damages are increasing. Existing insurance policies cannot always offer their customers enough coverage for weather related damages. The European project PIISA aims to develop new insurance concepts that contribute to climate adaptation. PIISA stands for Piloting Innovative Insurance Solutions for Adaptation.

In this project, we research what insurers can do to increase the success of nature-based adaptation solutions. How can insurers encourage their customers to reduce the risks of damage due to the changing climate using nature-based adaptation solutions? Does it work, for instance, to offer discounts on premiums? Or to offer a guide that clearly states how policyholders themselves can reduce the risks of damage?

Lisette Klok weet alles over dit project

 

What is the purpose of the PIISA project?

The PIISA project is a Horizon Europe mission. Currently, we have not adapted enough to climate change to control the damages. In other words, the gap between climate adaptation and climate risks is too big. The aim of this project is to use new insurance concepts to help closing this gap.

How is the PIISA project set up?

A total of 12 partners from 8 countries are working in the project. CAS develops new insurance concepts in the urban sector. Other partners in the project focus on the agricultural or forestry sectors. Literature and model studies are carried out for this purpose. In addition, the insurance concepts are tested and elaborated in pilots. This is done first in a specific European region. It will then be examined whether this concept can also be applied in the other European regions.

What is our role in the project?

Our role in the project is to examine what non-life insurers in Europe can do to increase the success of nature-based adaptation solutions in the urban sector. Because even though it is clear that these solutions offer many benefits, they are not yet standard practice in European cities. This is because the threshold for residents and businesses to use these solutions is often too high, for example because they think that construction or maintenance is too expensive. And insurers themselves are reluctant to invest in large-scale measures because they fear losing their competitive position. However, there are already insurers in the Netherlands looking for ways to increase their customers’ choice of nature-based adaptation solutions. One of these insurers is Interpolis. Interpolis offers its customers green roofs with a 10% discount in the premium.

What is our approach?

We conduct the research together with the Institute for Environmental Studies (VU-IVM). In the research, we distinguish between internal and external actions of non-life insurers:

  • Internal: what can non-life insurers do in their own organisation to increase the success of nature-based adaptation solutions in Europe?
  • External: what can non-life insurers do together with customers to increase the success of nature-based adaptation solutions at companies in Europe?

To answer this, we are conducting interviews with insurers. We are also examining the success of Interpolis’ action encouraging customers to green their roofs. We do this by analysing what the incentives and barriers are for building a green roof. CAS guides this process, VU-IVM develops choice experiments for this purpose. These should provide insight into the considerations people make in their choice whether or not to purchase a green roof. Finally, we examine what can further increase the success of nature-based adaptation solutions and how other insurers in the Netherlands and Europe can use Interpolis’ action. We will incorporate the results of the project into advice and practical tools for insurers.

More information

Would you like to know more? Then you can sign up for the PIISA newsletter via the PIISA website.

 

What is the purpose of the PIISA project?

The PIISA project is a Horizon Europe mission. Currently, we have not adapted enough to climate change to control the damages. In other words, the gap between climate adaptation and climate risks is too big. The aim of this project is to use new insurance concepts to help closing this gap.

How is the PIISA project set up?

A total of 12 partners from 8 countries are working in the project. CAS develops new insurance concepts in the urban sector. Other partners in the project focus on the agricultural or forestry sectors. Literature and model studies are carried out for this purpose. In addition, the insurance concepts are tested and elaborated in pilots. This is done first in a specific European region. It will then be examined whether this concept can also be applied in the other European regions.

What is our role in the project?

Our role in the project is to examine what non-life insurers in Europe can do to increase the success of nature-based adaptation solutions in the urban sector. Because even though it is clear that these solutions offer many benefits, they are not yet standard practice in European cities. This is because the threshold for residents and businesses to use these solutions is often too high, for example because they think that construction or maintenance is too expensive. And insurers themselves are reluctant to invest in large-scale measures because they fear losing their competitive position. However, there are already insurers in the Netherlands looking for ways to increase their customers’ choice of nature-based adaptation solutions. One of these insurers is Interpolis. Interpolis offers its customers green roofs with a 10% discount in the premium.

What is our approach?

We conduct the research together with the Institute for Environmental Studies (VU-IVM). In the research, we distinguish between internal and external actions of non-life insurers:

  • Internal: what can non-life insurers do in their own organisation to increase the success of nature-based adaptation solutions in Europe?
  • External: what can non-life insurers do together with customers to increase the success of nature-based adaptation solutions at companies in Europe?

To answer this, we are conducting interviews with insurers. We are also examining the success of Interpolis’ action encouraging customers to green their roofs. We do this by analysing what the incentives and barriers are for building a green roof. CAS guides this process, VU-IVM develops choice experiments for this purpose. These should provide insight into the considerations people make in their choice whether or not to purchase a green roof. Finally, we examine what can further increase the success of nature-based adaptation solutions and how other insurers in the Netherlands and Europe can use Interpolis’ action. We will incorporate the results of the project into advice and practical tools for insurers.

More information

Would you like to know more? Then you can sign up for the PIISA newsletter via the PIISA website.

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