Extreme heat causes 113 billion euro loss in Europe

Extreme heatwaves in Europe are creating significant financial risks for the insurance and pension sectors. The European Insurance and Occupational Pensions Authority (EIOPA) warned that rising temperatures pose a growing threat to financial stability, particularly affecting medical expense coverage and income protection lines. EIOPA President Petra Hielkema noted that while wildfires are highly visible, the impact of heatwaves on human health represents a more “silent and less visible” consequence that could become a major risk factor.

An analysis by Allianz estimates that extreme heatwaves across thirty European nations have resulted in total economic losses of approximately 113 billion euros. Italy faces the highest individual burden at an estimated 27.8 billion euros, followed by Germany at 25 billion euros and France at 20.1 billion euros. Together with Belgium and the Netherlands, these five countries account for 81 percent of the total costs. These losses represent roughly 60 percent of all economic damages caused by extreme weather phenomena in the region.