Heatwaves in Europe could hit insurers’ profits — S&P
Prolonged and intense heatwaves in Europe could negatively affect insurance companies’ profits due to an increase in payouts related to heat deaths and deteriorating health. This is stated in an assessment by the rating agency S&P, The Guardian reports.
The agency noted that the prolonged period of extreme heat in summer increased the number of insurance claims related to droughts and wildfires. The consequences could also be felt by life and health insurance companies, as well as reinsurers that provide financial protection to insurance companies.
Rising payouts and premiums
According to S&P estimates, an increase in insurance payouts could eventually lead to higher insurance premiums for customers. High temperatures are particularly dangerous for older people, so the number of claims under life insurance policies due to heat-related deaths is growing, as is demand for private medical services.
The report emphasized that rising temperatures have not yet been fully factored into the terms of existing insurance contracts. In addition to heat-related deaths, deteriorating health, treatment costs, and hospitalization could put pressure on the financial performance of insurers and reinsurers.
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Population ageing increases risks
The share of the population aged 65 and over in the European Union rose from 16.4% in 2004 to 21.6% in 2024. The share of people aged 80 and over increased from 3.8% to 6.1% over the same period. S&P believes that the growing number of older people, who are particularly vulnerable to heat stress, indicates a likely increase in heat-related mortality in Europe.
During the heatwave of June 22–28, about 9,000 of the 10,650 recorded excess deaths were among people aged 65 and over. In the United Kingdom, a four-day heatwave in May and an eight-day heatwave in June together caused 2,877 excess deaths, compared with 1,504 in the summer of 2025.
S&P noted that heat has not yet affected company ratings. At the same time, the situation could change in the medium and long term if extreme summer temperatures become more frequent and severe and Europe’s population continues to age.
