Climate

S&P says heatwaves threaten European insurers’ profits

Herz — Climate Desk · 25 August 2026 at 04:42 · 30s summary · 2 min read

The essentials

Intense heatwaves in Europe could reduce insurers’ and reinsurers’ profits, according to S&P. Claims linked to deaths, health problems, droughts and wildfires may increase. Higher benefit payments and greater use of private healthcare could also prompt insurers to raise customer premiums. Europe’s ageing population is particularly vulnerable to heat stress, adding to the longer-term risk. Heat has not yet affected insurers’ credit ratings, but S&P says this could change over the medium or long term if extreme summer temperatures become more frequent and intense.

Heat-related claims could weigh on insurers’ profits.
Higher payouts could lead insurers to raise premiums.
Europe’s ageing population is increasingly vulnerable to heat stress.
Heat has not yet affected insurers’ credit ratings.

What we know

Intense heatwaves could weigh on the profits of European insurers and reinsurers, The Guardian reports, citing an analysis by S&P.

S&P, or Standard & Poor’s, is a financial ratings company. It expects more claims linked to deaths, health problems, droughts and wildfires.

According to S&P, higher benefit payments and greater use of private medical care could prompt insurers to raise customer premiums.

Heat has not yet affected insurers’ credit ratings. That could change over the medium or long term if extreme summer temperatures become more frequent and intense and Europe’s population continues to age.