Climate
S&P says heatwaves threaten European insurers’ profits
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.