Following the positive response to last year’s inaugural Climate risk assessment – European insurance companies report, we are pleased to present an update with our latest 2025 climate scenario release to the global institutional investment community.
This 2025 update translates the financial consequences of climate change for the European insurance industry, using Ortec Finance’s latest climate scenarios to generate decision‑useful insights for CIOs, directors, actuaries and investment teams.
Key takeaways
Climate change shapes the economic backdrop
The European insurance industry faces significant macroeconomic shifts as a result.
Rising physical risks compromise insurability
Increasing claims and inflation drive policy payouts and premiums higher, challenging the industry’s ability to provide affordable insurance.
Transition improves long-term outcomes for insurers
While transition scenarios involve steeper short-term drawdowns, they support more favorable macroeconomic conditions, maintain premium affordability, and stabilize policy payouts over time.
Geography matters
Differences in the location of assets and liabilities shape how physical risks impact the insurer’s balance sheet, often driving divergent outcomes and challenging stability.
Climate change affects insurance lines differently.
Property and casualty insurers’ liabilities are more exposed to climate risks while life insurers are more vulnerable to deteriorating macroeconomic conditions.
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Download the report to the findings in detail and consider their implications for short-term liabilities, investment targets and the overall balance sheet.
Contact
Maurits van Joolingen
Managing Director, Climate Scenarios & Sustainability
Doruk Önal
Climate Risk ConsultantRelated Insights
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