S&P Global Ratings analyst Volker Kudszus reports that European life re/insurers are well-positioned to manage rising heatwave risks.
European life re/insurers are well-positioned to manage the growing 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 medium to long term as extreme temperature events become more frequent and more intense. The report highlights that the health impact falls disproportionately on the elderly, who are particularly vulnerable to heat stress. As the European population ages, the share of people aged 65 and over has increased significantly. S&P Global Ratings will continue to monitor these impacts and expects insurers to develop action plans to support loss-prevention initiatives.