Swiss Re said on Tuesday that ongoing wildfires in France and Spain are likely to drive higher demand for private insurance coverage in southern Europe. The reinsurer noted that wildfire losses are generally not covered by national insurance pools in the region, leaving homeowners to purchase separate policies and creating significant protection gaps. According to Balz Grollimund, Swiss Re’s Head of Catastrophe Perils, global insured wildfire losses have increased by about 12% annually in real terms since 1970, outpacing other major weather-related perils. He added that climate change is making wildfire-favourable conditions more frequent, particularly in southwestern Europe. Swiss Re said it is too early to estimate its own potential losses.

Prepared by Olivia Bennett and reviewed by editorial team.