In testimony to the parliamentary Budget, Finance and Public Administration Committee, Portugal's Insurance and Pension Funds Supervisory Authority (ASF) reported on the insurance market’s response to the severe storm sequence since mid-January, including Depression Kristin, and outlined its work to develop a shared-responsibility, pre-funded framework to strengthen protection against natural catastrophes. International reinsurers’ estimates cited in the hearing put insured losses at up to EUR 600 million, while around 114,000 claims had been notified and roughly EUR 42 million paid by 17 February 2026. ASF described insurers’ operational measures under its recommendations for extreme climate-related events, including rapid deployment of claims resources in affected areas, special adjusting plans and streamlined claims processes, with around 900 adjusters on the ground and simplified reports supporting faster handling. It noted that about 49% of exposed homes in municipalities under a calamity declaration lacked storm and/or flood coverage. Supervisory work includes collecting claims and payout data to assess alignment with consumer-protection recommendations and to evaluate sector-wide cost and solvency implications, alongside a review of each insurer’s reinsurance arrangements, particularly retention limits; ASF data show 87% of claims were assessed within 15 days, and about 20,000 claims had already been settled or received advances. Looking beyond the current event, ASF highlighted Portugal’s natural catastrophe insurance protection gap using EIOPA figures, including an estimate that only 5% of natural catastrophe losses from 1980 to 2024 were insured, with household earthquake cover at 19% and climate-risk cover at 51%. Under its 2026–28 Strategic Plan, ASF said it will propose a solution based on shared responsibility across households, businesses, insurers, reinsurers, capital markets and the state, and committed to present the foundations for an Integrated Natural Catastrophe Protection System.
Portuguese Insurance Regulator (ASF) 2026-02-18
Portugal's Insurance and Pension Funds Supervisory Authority reviews Storm Kristin claims handling and prepares proposal for an integrated natural catastrophe protection system
The Portuguese Insurance and Pension Funds Supervisory Authority (ASF) reported to the parliamentary committee on the insurance market's response to recent severe storms, estimating insured losses up to EUR 600 million. ASF outlined measures for rapid claims processing and noted a significant protection gap, with 49% of homes lacking storm or flood coverage. Under its 2026–28 Strategic Plan, ASF aims to propose a shared-responsibility framework to improve natural catastrophe protection.