The European Insurance and Occupational Pensions Authority (EIOPA) has warned that heatwaves are increasingly becoming a major risk for life and health insurers, as well as pension providers, due to climate change. In a report released on September 30, 2026, EIOPA stated that while the financial impact of heatwaves is currently limited, it is expected to rise in the coming decades. The report highlights that heatwaves have become the most deadly extreme weather phenomenon in Europe, causing around 300,000 deaths since 2000.
According to EIOPA, heatwave-related deaths account for approximately 97% of all weather- and climate-related deaths in Europe since 2000. The authority expects climate change to lead to more frequent, severe, and prolonged heatwaves, putting pressure on healthcare systems and directly and indirectly affecting insurers. The report identifies several insurance branches that are likely to be more affected by increasing heatwaves, including medical expense insurance, income protection insurance, and workers' compensation insurance.
EIOPA's report notes that the impact of heatwaves on insurers will not be limited to increased claims, but also on the assumptions used by insurers to price products and manage risks. Climate change can affect mortality rates, morbidity rates, and life expectancy, which are essential elements in life and health insurance models, as well as pension funds. The report also highlights that the increasing occurrence of wildfires and the spread of diseases transmitted by insects, such as dengue fever and malaria, will add new pressures on the healthcare and insurance sectors.
The authority has developed a framework to assess the risks of heatwaves, based on three key elements: hazard, exposure, and vulnerability. This framework aims to measure the potential impact on insurers and different lines of business. EIOPA emphasizes that the impact of heatwaves varies from one insurance product to another and from one portfolio to another, and therefore, the financial impact cannot be generalized to all companies to the same extent.
EIOPA recommends that insurers include these emerging risks in their climate assessments, taking into account the direct and indirect impacts on the economy and public health. The authority also notes that the coverage of public healthcare in Europe and the diversification of insurance portfolios have so far limited the financial impact of heatwaves. However, this is expected to change as heatwaves become more frequent and severe.
The report highlights that some insurance products, such as life insurance and health insurance linked to life, as well as life insurance products not linked to profit sharing, may be more affected by heatwaves. Insurers will need to adapt their risk management strategies and product pricing to take account of the increasing risks associated with heatwaves.
Overall, EIOPA's report emphasizes the need for insurers to be aware of the growing risks associated with heatwaves and to take proactive steps to manage these risks. By doing so, insurers can minimize their exposure to potential losses and ensure that they are adequately prepared to meet the challenges posed by climate change.
Key points
- EIOPA warns of rising heatwave risks for life and health insurers due to climate change.
- Heatwaves have caused around 300,000 deaths in Europe since 2000.
- Insurers are advised to include heatwave risks in their climate assessments and adapt their risk management strategies accordingly.
