S&P warns European heatwaves could squeeze insurers and raise premiums

S&P’s analysis links Europe’s recent record-breaking heatwaves to a rise in insurance claims tied to heat-related mortality and deteriorating health, particularly among the elderly. Between 2004 and 2024, the share of EU residents aged 65 and over grew from 16.4% to 21.6%, intensifying vulnerability to heat stress. During the 22-28 June heatwave, about 9,000 of the 10,650 excess deaths were among those 65+, with underlying conditions aggravated by high temperatures.

The agency warns that both primary insurers and reinsurers could see tighter financial margins, prompting potential premium hikes. While current ratings remain unchanged, S&P says continued intensification of summer heat and an aging population could affect insurers’ credit outlook over the medium to long term. The report will keep monitoring the sector’s performance as climate patterns evolve.