European wildfires face ‘major insurance gap’: Swiss Re

Swiss Re: fires in Europe, ‘major insurance gap’ Keystone-SDA

Swiss reinsurance giant Swiss Re cannot quantify the economic damage caused by the severe forest fires that have ravaged several European countries.

However, the company expects that these events will not have a material impact on its financial results, not least because a significant proportion of the damage is uninsured.

+ How to prevent wildfires in Switzerland and Europe

During the press conference on the half-yearly results, chief financial officer Anders Malmström said that there is a significant insurance gap in Europe with regard to the fires.

As wildfires, exacerbated by increasingly frequent heatwaves, represent a trend set to continue, the reinsurance company intends to raise awareness amongst the various stakeholder groups.

CEO Andreas Berger added that it is often mistakenly believed that fires are covered by national natural perils pools.

In reality, particularly in southern Europe, damage caused by forest fires is generally excluded, forcing property owners to take out private policies, with significant differences between countries.

Swiss Re believes the insurance sector must step up its efforts to prevent and mitigate such events.

Policies covering these risks need to be made more accessible, while preventive measures should be stepped up, such as restricting the construction of buildings in particularly exposed areas.

+ How we produce English news
Translated from Italian, reviewed by an English Department journalist.