Insurers Want Businesses to Wake Up to Costs of Extreme Heat
Swiss Re has identified extreme heat as a significant insurance threat in its latest annual report on emerging risks with the Zurich-based reinsurer noting that up to half a million people globally die from extreme heat effects each year. The death toll exceeds the combined impact of floods, earthquakes and hurricanes. Heat waves contributed to conditions that generated $78.5 billion in insured wildfire losses globally from 2015-2024, Swiss Re reported. The Los Angeles wildfires this year could add up to $45 billion in insured losses, according to UCLA Anderson School of Business estimates. The insurance industry has historically underestimated heat-related costs because damages spread across multiple policy types rather than appearing as a single category. Construction firms face rising medical insurance and workers compensation claims when outdoor workers suffer heat injuries, plus potential liability for inadequate cooling breaks. Read more of this story at Slashdot.
Swiss Re has identified extreme heat as a significant insurance threat in its latest annual report on emerging risks with the Zurich-based reinsurer noting that up to half a million people globally die from extreme heat effects each year. The death toll exceeds the combined impact of floods, earthquakes and hurricanes. Heat waves contributed to conditions that generated $78.5 billion in insured wildfire losses globally from 2015-2024, Swiss Re reported.
The Los Angeles wildfires this year could add up to $45 billion in insured losses, according to UCLA Anderson School of Business estimates. The insurance industry has historically underestimated heat-related costs because damages spread across multiple policy types rather than appearing as a single category. Construction firms face rising medical insurance and workers compensation claims when outdoor workers suffer heat injuries, plus potential liability for inadequate cooling breaks.
Read more of this story at Slashdot.
