S&P Global Ratings Warns Heatwaves Threaten European Insurers

S&P Global Ratings warns that intense heatwaves in Europe are threatening the earnings of life, health, and reinsurance companies. The agency describes a perfect storm where extreme summer temperatures intersect with an aging population, resulting in a surge of claims for heat-related deaths and a higher demand for private medical services.

Recent data illustrates the severity of this trend, showing that 9,000 of 10,650 excess deaths during a June heatwave occurred among individuals aged 65 and over. The agency notes that these risks are not yet fully reflected in original insurance contracts, which may force companies to increase premiums for customers to cover the rising payouts.

While current company ratings remain unaffected, the agency warns that frequent and intense heatwaves could impact financial performance and credit ratings over the medium to long term.