MunichRe News & Analysis

Insurance Companies Warn of $3.5B Wildfire Protection Gap in Europe

Insurers are raising concerns about a growing 'protection gap' in Europe regarding wildfire and disaster recovery costs. A wildfire in France and Spain has destroyed over 300,000 acres, and the total cost for five Eurozone countries impacted up to July is around €3.1 billion ($3.5 billion). These figures exceed the average estimated impact of €2.5 billion annually across the EU. Zurich Insurance Group's CEO Mario Greco stated that while all weather risks are insurable, managing these costs is becoming increasingly expensive. This situation is significant for investors as it may lead to increased insurance premiums and impact sectors like utility, real estate, and agriculture.