Europe’s heatwaves threaten insurers’ earnings, rating agency S&P says

Rise in claims linked to heat-related deaths and illness, especially among older people, could drive up premiums Europe’s intense heatwaves could hit insurers’ earnings as companies face a rise in claims linked to heat-related deaths and worsening health conditions, the rating agency S&P has said. While a long summer of extreme heat will have increased drought and wildfire-related claims, the rating agency said there would also be fallout for life and health insurers, and for the reinsurers who provide financial protection to insurance companies. That could ultimately translate to higher premiums for customers, as insurers try to cover increased payouts to policyholders. Europe’s heatwaves, paired with its ageing population, have created a perfect storm, with the health impacts of high temperatures falling disproportionately on older people. A study in The Lancet Planetary Health recently found that people aged 60 and over face dangers from exposure to heat at much lower temperatures than previously thought.

Missing media or need the complete publisher report? Open The Guardian World ↗