Who funds Europe's climate disasters
Europe is facing a significant rise in the costs of climate-related disasters, as extreme weather events such as wildfires, floods, and heatwaves have caused economic losses exceeding €822 billion since 1980. There has been a notable increase in these losses over the past four years, recorded as some of the highest since data collection began. Insurance coverage only accounts for about 25% of these damages, placing a heavy burden on governments, which bear most of the costs directly. This situation highlights the wide disparities in coverage rates among different countries. Consequently, there is a proposal to establish a unified European reinsurance system and a disaster fund aimed at sharing risks and ensuring greater financial sustainability. Additionally, investing in climate adaptation and prevention measures—such as updating building codes and managing forests—becomes essential to reduce future damages.
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