2026-08-04 · Source: Insurance Journal (API)
Summary in 3 Points • Europe faces its worst wildfire season, with significant damage in France, Spain, and Greece • French wildfires could result in €10 billion to €15 billion in total losses, according to Morningstar DBRS • Insurers expect claims for mass evacuations, business interruption, and utility outages --- Europe is experiencing its most severe wildfire season in recent history, with France, Spain, and Greece particularly affected. French authorities evacuated approximately 220,000 people due to unprecedented wildfires, with total losses estimated between €10 billion and €15 billion, according to Morningstar DBRS. Insured losses are expected to be several billion euros. The fires have highlighted Europe's 'protection gap', the difference between total disaster losses and the amount covered by insurance. Analysts warn that the increasing frequency and severity of climate-related risks, coupled with a lack of historical European wildfire data, could complicate future underwriting decisions. Insurers are preparing for claims related to mass evacuations, business interruptions, and utility outages.
The recent wildfires in Europe shows the growing risks associated with climate change, which could impact underwriting and pricing strategies in the London Market. As the frequency and severity of such events increase, insurers may need to reassess their exposure and consider revising policy wordings to address these emerging risks. The protection gap in Europe presents an opportunity for London Market insurers to offer innovative solutions to cover these uninsured losses. Additionally, the need for better data and modelling capabilities could drive demand for specialised risk assessment services within the market.