Swiss Re: Wildfires in Europe Expected to Drive Higher Insurance Demand
Impact of European Wildfires on Insurance Demand
ZURICH, July 28 (Reuters) - The ongoing wildfires in France and Spain are likely to increase insurance demand, Swiss Re said on Tuesday.
Insurance Coverage and Protection Gaps
Wildfire losses are generally not covered by national insurance pools in southern Europe, meaning homeowners have to opt for private insurance themselves, Swiss Re's Head of Catastrophe Perils Balz Grollimund said, adding protection gaps vary widely.
Trends in Wildfire Insured Losses
• Globally, wildfire insured losses have grown by around 12% annually in real terms since 1970, faster than any other major weather peril, Grollimund said.
Climate Change and Risk Assessment
• With climate change, wildfire-conducive conditions are now becoming even more frequent especially in southwestern Europe, he said, making risk assessments of European wildfires increasingly important.
Current Loss Estimates
• It is still too early to estimate losses and any potential impact on Swiss Re.
(Reporting by Marleen Kaesebier in Zurich; Editing by Aurora Ellis)
