Extreme heat is becoming one of the most urgent risks facing insurers worldwide. According to Swiss Re’s SONAR 2025 report, insured losses from heat-related wildfires are expected to total $78.5 billion globally between 2015 and 2024.
Rising Liability and Health Claims Linked to Heat Waves
The report also highlights a sharp rise in liability and health insurance claims connected to heat waves. These increases are driven by climate change, which intensifies the frequency and severity of extreme heat events. Additionally, legal risks are growing for companies that do not take sufficient action to reduce environmental damage.
Heat Drives Claims Across Multiple Insurance Sectors
Extreme heat is now fueling claims in several key insurance areas, including:
Health insurance
Property insurance
Liability insurance
Workers’ compensation
New Risks for Infrastructure and Technology Sectors
Swiss Re warns that ongoing heat waves pose risks to critical infrastructure, such as telecommunications networks. Overheating of data centers and other equipment could lead to system failures, affecting business continuity.
Industry Must Broaden Risk Focus Amid Converging Threats
Patrick Laflaub, Chief Risk Officer at Swiss Re, emphasized that the insurance industry must expand its risk perspective. He noted that multiple global trends—like extreme weather and digital risks—are converging, reshaping the overall risk environment for insurers.
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