ENVIRONMENT

Zurich reinsurer sees Europe wildfire insurance demand rising

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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.

Timeline of Events

1970 Global insured wildfire losses trend upward
Since 1970 Wildfire insured losses rise 12%
Recent years Climate change worsens fire conditions
This summer Wildfires affect France and Spain
Tuesday Swiss Re highlights protection gaps
Tuesday Reinsurer warns increasing insurance demand
Tuesday Too early to quantify Swiss Re losses

Why This Matters to You

Wildfires are becoming more common, especially in southern Europe. If you own property there, your current insurance may not cover fire damage. Check your policy. Consider getting additional coverage. It could save you a lot of money and stress.

The Bottom Line

Climate change is making wildfires more frequent and severe. This is driving up demand for private insurance. It's a stark reminder: we all pay the price for a warming planet. Worth forwarding if you know someone with a home in Europe.