Allianz and AXA reports highlight escalating global and Turkish climate risks

New reports from Allianz and AXA outline the significant economic and social consequences of climate change. The Allianz Climate Economics Report 2026 states that extreme weather events cost the global economy 184 billion euros in 2025. While this is a 32 percent decrease from 2024, it remains 20 percent above the 2000–2019 average. The report warns that a strong El Niño could lead to a 395 billion euro production loss in 2027. Additionally, only 38 percent of total economic losses in 2025 were covered by insurance, leaving a 115 billion euro protection gap.

Focusing on Turkey, the AXA Türkiye Climate Report 2026 predicts severe localized impacts over the next 25 years. By 2050, approximately 65 million people in Turkey—roughly 74 percent of the population—could face high or very high water stress. Furthermore, about 23 million people may encounter heat stress. The report identifies water scarcity, extreme heat, forest fires, floods, and landslides as primary risks that threaten agriculture, urban infrastructure, energy production, and supply chains.