Europe’s wildfire season exposes climate insurance gap

LONDON/PARIS – Domestic insurers are expected to absorb most of the losses from Europe’s worst wildfire season in recent history, but the blazes are also raising a bigger question: Who will pay as climate-driven disasters become more frequent and destructive?

Authorities have evacuated about 220,000 people in France as unprecedented wildfires burn across the country. Fires have also swept through Spain and Greece, fueling concerns about rising insurance costs and widening gaps in protection against climate-related risks. France’s total losses could ​reach €10 billion to €15 billion ($11.5 billion to $17.3 billion), with insured losses running into several billion euros, according to credit ratings agency Morningstar DBRS.

While manageable for ‌the ‌industry, analysts say the fires could offer a glimpse of the challenges ahead if blazes increasingly threaten densely populated areas.