Growing Impact of Weather-Related Disasters

The rise in weather-related disasters and losses is significantly influenced by four types of inflation: monetary, wealth accumulation, population migration, and climate inflation. The increase in wealth leads to higher insured values, while migration toward high-risk areas exacerbates exposure to natural catastrophes. Currently, only about 25% of these losses are insured in Europe, revealing a substantial gap in coverage that varies by geography. This underinsurance presents critical challenges for both individuals and the insurance industry as climate change intensifies the frequency and severity of extreme weather events.