S&P Global Ratings analyst Volker Kudszus reports that European life re/insurers are well-positioned to manage growing heatwave risks.
European life re/insurers are well-positioned to manage the increasing risks of heatwaves, which are becoming one of the continent's deadliest climate risks. According to a report by S&P Global Ratings, Europe is warming at twice the global average rate, leading to a persistent increase in heat-related excess mortality. Volker Kudszus, a credit analyst at S&P Global Ratings, noted that while this summer's heatwaves affect the financials of re/insurers, the impact is not significant enough to affect their ratings. However, Kudszus stated that credit pressure may increase over the long term as extreme temperatures become more frequent and demographic aging continues. The report highlights that elderly people are disproportionly affected by heat stress, with the majority of excess deaths during a recent heatwave were among those aged 65 and over. S&P Global Ratings will continue to monitor these impacts, expecting insurers to develop action plans to support loss-prevention initiatives and raise awareness of health risks.