European wildfires expose an insurance shortfall
Wildfires in several EU countries expose limits of private insurance and increase pressure on states and households.
Europe is enduring one of its most severe wildfire seasons in recent years, with France, Spain and Greece among the countries hardest hit.
In France alone roughly 220,000 people were evacuated, and preliminary estimates put the total economic damage between 10 and 15 billion euros.
Insurance companies are expected to cover only a portion of the losses, meaning much of the financial burden will fall on governments and private citizens.
Rising costs, growing gap
Experts warn that more frequent and more intense fires — fuelled by climate change — will push up insurance costs and widen the gap between actual losses and what insurers will pay.
If large wildfires begin to strike densely populated areas more often, the scale of losses could climb sharply and test public finances and emergency systems.
According to figures from European institutions, only about one quarter of losses from climate-related disasters in Europe over recent decades have been insured.
Analysts say the current wave of fires is likely to intensify calls across the European Union for stronger protections against climate risks and for measures to broaden insurance coverage.
Photo: press material from the event
