Unprecedented wildfires are sweeping across Europe, particularly in France, Spain, and Greece, causing widespread destruction and raising concerns about the increasing frequency and severity of climate-driven disasters.
Climate Insurance Gap
The blazes have renewed attention on Europe’s ‘protection gap’ – the difference between total losses from disasters and the amount covered by insurance. Authorities have evacuated about 220,000 people in France, with total losses estimated to reach €10 billion to €15 billion.
While private insurers are expected to shoulder most of the recovery bill, the fires have exposed a lack of historical European wildfire data, which insurers rely on to model and price risk. This could complicate underwriting decisions and lead to rising insurance costs.
Household premiums are likely to rise in higher-risk areas when policies come up for renewal, according to Rodolphe Mann, head of France at insurance broker Miller. Property insurance is widely held in France, and the increasing frequency and severity of climate-related risks are expected to drive up costs.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
