Europe faces $570 billion climate damage cost by 2030, insurance sector under strain

Allianz estimates that climate‑related damages could exceed $570 billion for the four largest economies of continental Europe by 2030 – about $240 billion for France, $130 billion for Germany and more than $100 billion each for Italy and Spain. The forecast does not yet include the impact of the intense wildfires that have become commonplace as Europe warms faster than any other continent. Recent fires have scorched over 270,000 ha in France and Spain, contributed to a total loss of more than one million hectares last year and forced more than 300,000 residents to evacuate.

Heatwaves have also spurred a surge in demand for air‑conditioning units; Chinese maker Midea reports that shipments to France and Spain have more than doubled, raising electricity consumption and adding to inflationary pressure on energy and transport costs. Agricultural losses are rising, with cereal production hit by over $2.3 billion in damage and high‑value crops such as olives and grapes suffering.

The insurance market is feeling the pressure. Premiums for tourism policies in high‑risk zones are rising about 15 % annually, while roughly 75 % of climate‑related disaster losses remain uninsured. Insurers are increasing prices or withdrawing coverage, and European governments have already recorded more than €200 billion in climate‑related expenses between 2021 and 2024.