MILLIMAN ANNUAL REPORT

2022 Extreme Weather Events in Europe

Actionable steps insurers can take after another year of severe weather brought above-average claims.

Overview

Drought in focus

Actions for insurers

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OVERVIEW

The climate change impact on European insurers

By Tarik Aouragh, Niccolò Basetti Sani Vettori, Mohamed Benkhalfa, Christoph Krischanitz, Ian Penfold, Eugenio Portales, Antoine Rainaud, Giuseppe Semeraro, Anandi Shah, José Silveiro, Martijn van Rooijen, and Menno van Wijk

In 2022, extreme weather across Europe once again made headlines: Vast wildfire damage. The worst drought in 500 years. The hottest summer ever recorded.

Europe is warming faster than the rest of the world, with severe economic consequences.

Our annual report highlights the specific toll on the insurance industry, which faced a record number of claims and higher repair costs amid rising inflation—all coming as the continent was just emerging from the COVID-19 pandemic and grappling with an energy crisis and the war in Ukraine.

Click the tabs below to see the 2022 weather events with the most widespread impact: drought, heat waves, winter storms, and wildfires.

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In Focus

The drought: 2022’s most expensive European weather event

Europe’s record-breaking drought has been called the worst in 500 years.

Dry conditions caused insured losses of EUR 19 billion, but the costs went beyond ravaged crops.

Click through the graphics below to see the drought's potential secondary and tertiary effects.

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ACTIONABLE STEPS FOR 2023

Helping insurers adapt to climate change

Our extensive report helps insurers understand the scale of the 2022 extreme weather events in Europe and anticipate what business decisions may lie ahead.

As regulation evolves, there are steps they can take now to improve climate resilience and financial security. Among them:

Incorporating climate change risk stress and scenario testing
Using causal modeling to consider climate risk and asset returns
Developing climate risk scenarios for Solvency II ORSA

Countries at a glance

How was my region affected?

The full report explores the effect of 2022's extreme weather events and the future outlook for these countries.

Download the full report for detailed recommendations

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Additional Resources

Milliman Climate Resilience Initiative

Drawing on our unique expertise in risk, we’ve united leaders from insurance, government, academia, and non-profits to help anticipate and address the most pressing climate problems.

Learn more

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2022 Extreme Weather Events in Europe

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The climate change impact on European insurers

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The drought: 2022’s most expensive European weather event

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Helping insurers adapt to climate change

How was my region affected?

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Milliman Climate Resilience Initiative

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Data-driven solutions for climate resilience

Milliman Complex Risk Analysis (CRisALIS)

PinPoint

Bungalow

Milliman M-PIRe

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We’re here to help

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CHOOSE A LOCATION AND LANGUAGE

The climate change impact on European insurers

The drought: 2022’s most expensive European weather event

Helping insurers adapt to climate change

How was my region affected?

Milliman Climate Resilience Initiative

Data-driven solutions for climate resilience

Milliman Complex Risk Analysis (CRisALIS)

PinPoint

Bungalow

Milliman M-PIRe

We’re here to help

CHOOSE A LOCATION AND LANGUAGE