(Reuters) – Europe's insurance industry does not have the capacity to deal with the systemic risk of a pandemic, and more protection must be introduced through private-public partnerships, the head of the Italian insurance company Generali said on Thursday.
In an online interview with Politico, Philippe Donnet said that the COVID-19 pandemic was an opportunity for Europe to build greater protection for people and businesses.
"When the risk becomes systemic, it is no longer insurable and obviously has to use public money," he said. pandemic, if it happens, "he said.
Asked about Solvency II capital injections, Donnet said they must remain transparent and fair and add any review of the system needed to promote sustainable recovery.
Mr. Donnet proposed creating a special asset class for green bonds, treating them better in terms of capital costs.
"It would drive long-term investors as insurance companies to invest more in green bonds," he said.
More news about insurance and risk management on the coronavirus crisis here.