S&P Says EU Life Reinsurers Can Absorb 10,650 Heatwave Deaths as Ageing Raises Long-Term Risk
Updated
Updated · Reinsurance News · Aug 20
S&P Says EU Life Reinsurers Can Absorb 10,650 Heatwave Deaths as Ageing Raises Long-Term Risk
3 articles · Updated · Reinsurance News · Aug 20
Summary
S&P said European life re/insurers can manage the financial hit from this summer’s heatwaves without ratings pressure, even as heat-related excess mortality rises across the region.
10,650 excess deaths were recorded during a single late-June heatwave, with more than 9,000 among people aged 65 and over, underscoring why elderly populations drive the sector’s exposure.
Europe is warming at roughly twice the global average rate, and S&P said more frequent, intense extreme heat could increase medium- to long-term credit pressure despite insurers’ current resilience.
EU demographics are worsening that risk: the share of people aged 65 and over rose to 21.6% in 2024 from 16.4% in 2004, while those aged 80 and over increased to 6.1% from 3.8%.
S&P said it will keep monitoring rated re/insurers and expects insurers to roll out action plans, loss-prevention efforts and policyholder awareness measures over the next few years.