This consultation paper investigates how natural catastrophe insurance within the Solvency II framework can better account for climate change adaptation measures. The document distinguishes between macro‑level protections, such as public flood defenses, and micro‑level interventions implemented by individual property owners to reduce vulnerability. By analyzing perils like floods, earthquakes, and windstorms, the report evaluates whether the standard formula for capital requirements should be adjusted to reward these risk‑reduction efforts. The text explores several regulatory options, including the use of undertaking‑specific parameters and internal models, to ensure that insurers have the financial incentive to promote resilience. Ultimately, the paper seeks to bridge the protection gap by aligning prudential capital charges with the actual physical improvements made to insured assets.