EU’s Insurance Watchdog Warns of Risks Tied to Extreme Heat

Europe’s insurance and pensions watchdog warned extreme heat is adding to risks the industries face.

The European Insurance and Occupational Pensions Authority said multiple sectors are likely to be impacted as temperatures rise, including insurance covering medical costs and income protection.

While the summer’s wildfires captured headlines, “climate change also has quieter, less visible consequences,” EIOPA Chair Petra Hielkema said in a statement on Wednesday.

“The impact of heat waves on human health is one of them,” she said. “Our preliminary study shows that it could become a material risk factor for certain insurance lines and pension providers, despite offsetting factors and strong diversification across products and risks.”

The warning is the latest by EU authorities charged with safeguarding the bloc’s economic stability. The European Central Bank’s top climate official said earlier this month that the cumulative impact of extreme weather shocks is morphing into its own risk category. There is a “chronic impact that is slowly surfacing,” Irene Heemskerk said.

Photograph: People wait in the shade during hot temperatures outside the Central Railway Station in Warsaw, Poland, on Wednesday, Aug. 5, 2026; photo credit: Damian Lemanski/Bloomberg