D1.3 Design and Modelling Framework for WP3 Pilots

The intensifying effects of climate change are leading to more frequent and severe natural disasters across Europe, putting communities at increased risk of extreme weather events. With the number of people living in hazard-prone areas rising, potential losses are expected to grow significantly (IPCC, 2023). Multi-stakeholder collaboration and adaptable products like parametric insurance could bridge local protection gaps and help address some of the adverse effects of climate change. The Piloting Innovative Insurance Solutions for Adaptation (PIISA) project, funded by Horizon Europe, aims to address these challenges by developing innovative, climate-sensitive insurance products to de-risk and encourage adaptive management practices. The PIISA project is a three-year initiative involving 12 partners from 5 EU countries, including research institutions, meteorological agencies, and insurance experts. It focuses on co-developing climate-resilient insurance portfolios and data-sharing solutions for climate risk and losses. The purpose of this report is to consolidate findings from PIISA’s research, encompassing insurance models, factors influencing uptake of insurance covers, risk modelling, and risk-reduction strategies. It provides both general insights and specific details for each of the five PIISA pilots individually, serving as a comprehensive synthesis document for pilot leaders. The report summarizes tools and strategies for effective implementation and adaptation and provides practical tools and guidelines to inform pilot design and implementation.