Heatwaves, tropical nights, floods. What does this have to do with us?
Getting up, having a quick coffee, brushing the teeth, showering, getting dressed and starting the workday – that could be the whole morning routine. Were it not for summer. Now the very first task is to open all the windows, ideally before sunrise.
Heat stress – our new summer companion?
Heatwaves and tropical nights have long since become the new normal. The European State of the Climate 2024 (ESOTC) confirms that 2024 was Europe’s warmest year on record. Across the continent, the number of days with at least “strong heat stress” (>32°C) and tropical nights (>20°C) reached record-breaking levels: on average almost a month of heat stress and about 12 nights without night-time cooling.
Southeastern Europe was particularly affected. There, 66 heat-stress days and 23 tropical nights were recorded. The longest heatwave lasted 13 consecutive days. And while we look for shade during the day for a bit of relief, at night our bodies still have no chance to recover.
When weather becomes dangerous
In addition to the heat, 2024 also brought extreme rainfall. Storm “Boris”, for example, caused the worst flooding in Europe since 2013, affecting several countries in which Vienna Insurance Group (VIG) operates – among them Poland, Austria, Hungary, the Czech Republic, Slovakia and Romania.
Extreme events like these are no longer outliers anymore. The changing climate demands new solutions from society, politics and business.
Analysing climate risks and ensuring insurability
VIG has expanded its expertise in natural hazards and climate change significantly in recent years:
It uses scenario analyses to estimate how climate change will affect claims development in the insurance business. Internal and external experts work together to calculate the probabilities of natural disasters and potential claim developments in all VIG key markets. The analyses show that, in particular, flooding poses a significant risk to VIG's operations. Alongside increased claims due to flooding, an increase in claims due to stronger hail and summer storms is to be expected as well.
VIG uses the findings from these analyses to optimize its reinsurance coverage for assumed risks.
Global warming means that the prevention of damage caused by natural hazards is playing an increasingly important role. VIG therefore aims to sensitise its customers to protective measures. Support for corporate customers begins with a careful analysis of the natural hazard situation by VIG partner company, Risk Consult. Based on these analyses, tailored recommendations are developed to mitigate risks and prevent damage from natural hazards.
Climate adaptation is feasible and necessary
Despite alarming statistics, progress is being made. The ESOTC report shows:
- More than half of European cities have developed and started to implement climate adaptation plans, twice as many as in 2018.
- The share of renewable energy in electricity generation reached a record 45% in 2024.
A start, but still far from enough – yet it gives us something to build on. Perhaps that thought will help us fall asleep in sheets that are far too hot. Until the alarm clock rings and it's time to air out again.
