Maryam Golnaraghi: Safeguarding home insurance

OPINION by Maryam Golnaraghi, Director Climate Change & Environment, Geneva Association

Globally, insured losses from extreme weather events have been on the rise. They accounted on average for roughly one third of total economic losses and have exceeded $100 billion every year since 2020. Between 2000 and 2023, annual accumulated insured losses for more localised perils such as floods, wildfires and severe convective storms accounted for 55% of total insured losses on average.

Over the past decade, Europe has seen a rise in severe weather events and related losses.1 In response to these growing losses, the European Commission launched the 2022 'EU Climate Resilience Dialogue' to explore ways to close the protection gap and boost Member State resilience to intensifying extreme weather.2 Considering extreme weather threats are becoming more frequent and severe, in 2024 the European Insurance and Occupational Pensions Authority (EIOPA) and the European Central Bank (ECB) have developed a two-pillar EU-level proposal to address the widening extreme weather protection gap, with an EU public-private reinsurance scheme and an EU fund for public disaster financing.

A recent report by the Geneva Association4 explores the growing challenges to the availability and affordability of home insurance, particularly in advanced economies, and offers a roadmap for reducing property risks and boosting local resilience.

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