Extreme weather drives up insurance prices
10 March 2025
The inability of global leaders to effectively tackle the climate crisis comes with a price tag. Among those who had to dig deeper into their pockets recently were insurance companies. In 2024 alone, estimated losses from natural disasters amounted to about €128 billion, with the climate crisis being behind over a third of all weather-related insurance losses.
As scientists predict that extreme weather will occur more often in Europe in the coming years, insurance companies are increasing prices to maintain a profitable business. So far, areas vulnerable to climate disasters are the most affected.
Jeseník, a Czech village flooded last September, is now struggling to find a company willing to offer its insurance services for less than triple the initial price. As for Czechia's convenient geographical location in the middle of Europe, climate disasters used to be rare here.
Yet, in recent years, they have occurred much more often, ranging from floods, windstorms, and hail to tornados, thus forcing insurance companies to react to this development. According to a recent study, heavy rainfalls causing floods are now twice as likely in Central Europe than before the climate breakdown.
 | Eli Volencová While the climate crisis remains an abstract concept for many, increasing bills represent a very tangible consequence for European households. Rising insurance prices are an unpleasant addition to the existing housing crisis. In the UK, for instance, the annual average price of combined building and contents home insurance in 2024 soared by 16% compared with 2023, primarily due to more frequent storms – another reason to advocate for immediate climate action. |
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