GREEN PAPER on the insurance of natural and man-made disasters

As many other regions of the world, the European Union is vulnerable to nearly all types of natural disasters. Disasters not only cause human losses but also damages to the value of billions of euros every year, affecting economic stability and growth. Disasters may have cross-border effects and can potentially threaten entire areas in neighbouring countries. Even where costs of major disasters are locally concentrated, if costs are inadequately covered by insurance then individual Member States may carry large fiscal burdens, which could cause internal and external imbalances. This is thus an important issue for citizens, companies and governments across the Union.

This Green Paper poses a number of questions concerning the adequacy and availability of appropriate disaster insurance and accompanies the Communication entitled "An EU strategy on adaptation to climate change". The objective is to raise awareness and to assess whether or not action at EU level could be appropriate or warranted to improve the market for disaster insurance in the European Union. More generally, this process will also expand the knowledge base, help to promote insurance as a tool of disaster management and thus contribute to a shift towards a general culture of disaster risk prevention and mitigation, and bring in further data and information.