Fidelidade, Portugal’s major insurance group, has established a dedicated research facility to analyze climate risks and their implications for the insurance industry and society at large. The Impact Center for Climate Change (ICCC), launched in October 2024, represents a strategic response to mounting climate volatility affecting European markets.
According to Rui Esteves, Technical General Director of Fidelidade Group, the center emerged from a recognition that climate change poses unprecedented challenges to traditional insurance models. The timing proved significant when Portugal was hit by the Kristin storm, providing the newly created facility with a real-world test case for its capabilities.
Operational Support During Crisis
During the Kristin storm, the ICCC demonstrated its operational value by rapidly producing damage incidence maps and analytical insights. These tools enabled Fidelidade to understand the spatial distribution of losses and identify patterns in how climate events affect different regions and building types. The analysis revealed important findings regarding housing vulnerability and structural weaknesses that become apparent only when extreme weather tests infrastructure resilience.
Esteves emphasized that comprehensive insurance coverage should be understood differently in an era of climate uncertainty. “Seguro multirriscos não é um imposto, é uma proteção contra eventos devastadores,” he stated, underscoring that multi-risk insurance represents protection against devastating events rather than an unnecessary cost to consumers.
Three-Pillar Approach
The ICCC operates across three distinct spheres of activity. First, it focuses on improving Fidelidade’s insurance business operations by developing climate-informed risk assessment methodologies and creating new insurance products that account for evolving climate hazards. Second, the center educates clients and business partners about climate risks, helping them understand their exposure and available mitigation strategies. Third, it fosters collaboration with universities and researchers while engaging with policymakers to shape climate adaptation policies.
This multi-stakeholder approach positions Fidelidade as more than a reactive market player. Instead, the company is positioning itself as a contributor to broader climate adaptation strategies across Portugal and potentially the wider European region.
European Context
The establishment of the ICCC reflects a broader shift across Europe’s insurance sector, where climate change increasingly dominates strategic planning. Insurance companies across the continent face mounting pressure to understand climate risks more precisely, develop sustainable underwriting practices, and help their customers adapt to climate realities.
Portugal has become particularly vulnerable to extreme weather events due to its geography and climate patterns, making initiatives like Fidelidade’s research center increasingly relevant. As other European insurers grapple with similar challenges, Portuguese institutions like Fidelidade may offer valuable models for climate risk analysis and adaptation that could inform industry practices across the EU.