European heatwaves pose earnings threat to insurers, S&P warns
Source Summary
S&P Global Ratings warns that Europe's intense heatwaves could reduce insurers' earnings through increased claims related to heat-related deaths and illness, particularly among older populations. The rating agency expects rising costs for life and health insurers, as well as reinsurers, from drought, wildfire, and health-related claims driven by prolonged extreme heat.
Why it matters
Rising insurance claims from heat-related mortality and morbidity directly threaten the profitability of major financial institutions and could lead to higher premiums for consumers across Europe.
