Extreme heat worldwide is one of the biggest threats to society, industry and the insurance business.
A new report from global reinsurer Swiss Re warns that the growing dangers of high temperatures are expected to be felt inordinately by the insurance sector, which underwrites financial losses related to property, business, and human health and life.
Extreme heat can disrupt transport and energy systems, cause electrical outages and wildfires, and exacerbate the risk of illness and death. That threatens to have expensive ramifications for insurers.
“Extreme heat used to be considered the ‘invisible peril’ because the impacts are not as obvious as of other natural perils,” said Jérôme Haegeli, Swiss Re’s group chief economist, in a statement. “With a clear trend to longer, hotter heatwaves, it is important we shine a light on the true cost to human life, our economy, infrastructure, agriculture and healthcare system.”
