Portugal Mandatory Catastrophe Insurance Delayed
đ Key Highlights & Context
- The Ministry of Finance is still drafting the proposal, targeting completion in 2027
- ECO reports a technical proposal from the Insurance and Pension Funds Supervisory Authority (ASF) exists, but key decisions on who must insure and coverage levels remain unresolved
- Prime Minister LuĂs Montenegro first announced the fund on 28 April after severe storms hit the country in early 2026
The Ministry of Finance continues to work on a mandatory catastrophe insurance system for Portugal, but the scheme still lacks a legislative framework, defined coverage requirements, and a confirmed implementation date. These gaps persist more than six months after the government first announced the measure.
The initiative was prompted by a series of devastating storms that struck Portugal at the start of 2026. Prime Minister LuĂs Montenegro announced on 28 April, as part of the Portugal Transformation, Recovery and Resilience (PTRR) programme, the creation of a Natural and Seismic Catastrophe Fund. The original plan envisioned mandatory coverage for residential properties and business infrastructure, backed by a public solidarity mechanism to help lowerâincome households access protection.
According to ECO, the Insurance and Pension Funds Supervisory Authority (ASF) has supplied a technical proposal, yet key decisionsâsuch as who will be required to purchase insurance, the level of protection offered, and which body will manage the catastrophe fundâremain outstanding. The government has delayed implementation while questions over financing, risk coverage, and costâsharing between the state, insurers and policyholders are resolved. Officials hope to finalise the proposal in 2027.