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S&P says EU life reinsurers can absorb heatwave excess mortality risk
In a late-June heatwave, S&P found more than 9,000 of 10,650 excess deaths were among people aged 65 and over.
S&P Global Ratings said European life reinsurers are well positioned to assess and manage the growing risks from heatwaves as extreme temperatures become one of Europe’s deadliest climate threats. In the report, S&P noted that Europe is warming at roughly twice the global average rate and that recent heatwaves have driven tens of thousands of additional deaths from heat-related excess mortality.
S&P attributed much of the impact to elderly populations, saying extreme heat disproportionately worsens existing health conditions such as cardiovascular disease and dehydration. For a single late-June heatwave, the report cited more than 9,000 of the 10,650 excess deaths occurring among those aged 65 and over.
The rating agency linked the scale of future risk to demographic change, pointing to the EU’s ageing population, including an increase in the share of people aged 65 and over to 21.6% from 16.4% between 2004 and 2024. It also said the proportion of those aged 80 and over rose to 6.1% from 3.8%, leaving more people vulnerable to heat stress.
S&P also said it expects heatwave effects, including excess mortality and deterioration of existing health conditions, to affect European re/insurers’ financials, but not to an extent that would affect ratings. However, it warned that credit pressure could rise over the medium to long term as extreme temperature events become more frequent and intense, and that it will continue monitoring heat-related impacts on rated re/insurers’ performance.