European Commission developing a Framework for Climate Resilience

The impacts of climate change are already visible and tangible. However, the floods, droughts and wildfires of recent years are only the beginning of a long-term trend. As climate change progresses, natural hazards are expected to become more frequent and severe. Weather- and climate-related extreme events are already causing substantial damage across Europe. Extreme heat alone has resulted in tens of thousands of premature deaths in the EU in recent years, including an estimated 24,000 in the summer of 2025. Between 2020 and 2024, economic losses from damage to infrastructure and property in the EU averaged around EUR 45 billion per year (source: European Scientific Advisory Board on Climate Change).

Natural disasters are placing an increasing burden on major economies

An analysis by reinsurer Munich Re concludes that losses from natural disasters are placing an increasing burden on major economies. In Germany, for example, losses as a share of gross domestic product rose from approximately 0.1 percent between 2010 and 2019 to almost 0.3 percent between 2020 and 2024. In the United States, losses from natural disasters amounted to as much as 0.54 percent of GDP between 2020 and 2024. This represents more than a fivefold increase since the 1980s, when the figure stood at 0.1 percent for the period from 1980 to 1989. Tobias Grimm, Chief Climate Scientist at Munich Re, concludes: “It would make more sense to invest significantly more in prevention than to spend billions on reconstruction after disasters.”

European Commission developing an EU framework for climate resilience

Prevention also plays a central role in the new EU framework for climate resilience currently being developed by the European Commission. The framework aims to strengthen risk management across Europe and support Member States in preparing for and reducing the growing impacts of climate change. The European Commission conducted a consultation earlier this year and plans to carry out an impact assessment as the next step. The new framework is expected to be presented in the second half of 2026.

EU Climate Advisory Board puts forward comprehensive proposals to strengthen climate resilience

In a comprehensive report, the European Scientific Advisory Board on Climate Change warns that rising climate risks could increasingly undermine Europe’s competitiveness and place additional pressure on public finances. This would be particularly likely if efforts to mitigate climate change prove insufficient and far-reaching adaptation measures are not implemented. The Advisory Board makes several recommendations for strengthening the EU climate resilience framework:

• Introduce mandatory and harmonised climate risk assessments across all EU policy areas and in all Member States. 
• Establish a common reference scenario for adaptation planning consistent with global warming of 2.8°C to 3.3°C by 2100 (background: Europe is warming faster than the global average). 
• Define a clear set of objectives for a climate-resilient EU by 2050 and beyond. 
• Mobilise public and private investment in adaptation measures and establish a coherent approach to managing the costs of climate impacts. 

Insurers as strategic partners for climate resilience and risk management

GDV supports the development of the EU framework for climate resilience and risk management. A key objective for insurers is to ensure that insurance coverage against natural hazards, such as flooding caused by heavy rainfall or river flooding, remains widely available and affordable in the future.

To improve transparency around climate risks and strengthen incentives for prevention, GDV has submitted several concrete proposals for the development of the EU climate resilience framework. Key proposals include:

• Establishing an EU-wide legal framework requiring the disclosure of natural hazard risks through national public hazard information portals. 
• Introducing mandatory assessments of exposure to climate and natural hazards for new buildings and major renovations, as well as standardised natural hazard certificates for all buildings. 
• Promoting statutory restrictions on construction in flood-prone areas across Member States. 
• Strengthening national public-private partnership mechanisms to promote prevention and climate resilience and to ensure the long-term insurability of natural hazard risks. 

Addressing the continuing rise in climate risks and the associated economic burden will require comprehensive and systematic adaptation to the impacts of climate change. At the same time, effective climate mitigation remains essential, as there are limits to how far societies and economies can adapt.