Rising Temperatures Seen Driving Higher Premiums, Losses Across Europe

MT Newswires Live07-31

Insurers, reinsurers, and brokers are predicting increased premiums and larger catastrophe-related losses in Europe, viewing rising temperatures as a long-term trend rather than a temporary shock, Bloomberg reported Thursday.

The industry is "actively evaluating" whether the shift represents a fundamental change in Europe's catastrophe risk landscape, said Will Bruce, global head of climate risk consulting for Aon (AON), the report said.

Munich Re said the combined forces of El Nino and global warming have created a "dangerous mix" that will drive up losses in the second half of the year, according to the report.

Wildfires have already affected Spain, France, and Greece, with "very high" fire danger forecasts reaching as far north as Scandinavia, and a large wildfire broke out Thursday near a nuclear power station in the UK, the report added.

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