Extreme weather in Europe
Where were the 2023 European extreme weather events?
Across Europe, 2023’s most pervasive extreme weather perils were flooding and drought. Hover below to see some of the impacts.
Extreme flood events
Austria
France
Germany
Italy
Romania
Spain
UK
Extreme drought events
Austria
Luxembourg
Netherlands
Poland
Portugal
Romania
Spain
Floods in Europe
Because a warmer atmosphere can hold more moisture, climate change is making extreme rain and flood events more common. This was glaringly evident in 2023, as flooding struck across Europe.
For European insurers and communities, the financial toll of floods is rising.
€100m
Estimated flood damage in Austria
€500m
Estimated flood damage in France
€139m
Flood costs to Spanish insurers were €24 million, with an additional €100 million to €115 million covered by the country's Insurance Compensation Consortium.
Across Europe, flood risk is only increasing. In the U.K., for instance, 2023 rainfall levels were 11% higher than average. In Italy, the precipitation ratio was nearly 8X the historical average during May flooding and 7X the historical average during the November flood.
This trend underscores the danger of persistent underinsurance against flood risk across Europe. For example, in Lower Saxony, the German state most affected by flooding, only 32% of homes are insured against natural hazards. In the Netherlands, flood risk associated with large rivers and the sea is not currently insured.
Heatwaves and drought in Europe
Earth's average temperature is now 1.48°C higher than during the pre-Industrial era, and 2023 was the hottest year ever recorded.
In Portugal, hot and dry weather began in February. In Spain, heat records began to fall in spring. But even Northern Europe, typically cooler, endured record heat in 2023: Germany, for example, had its warmest year since record keeping began in 1881. Belgium exceeded its historical temperature average for most months.
The 2023 heatwaves also led to drought across Europe and significant agricultural losses. Again, while Southern Europe experienced the most extreme drought conditions, Northern Europe was not immune. Impacts included:
Luxembourg
smaller harvest than in 2022; losses on insured yields reached €150 million
Poland
smaller harvest than average; drought frequency has doubled over the past decade
Spain
increase in farm area affected by drought from 2021; €455 million estimated indemnities from lost crops
Although less destructive than in recent years, the 2023 wildfires, sparked by drought, burned a combined 120,000 hectares in Spain and Portugal.
Dry land also weakens building foundations, and the Association of British Insurers noted a surge in subsidence claims.
How can insurers manage the risks posed by climate change?
Europe's extreme weather events of 2023 underscore the need for the insurance industry to develop comprehensive strategies to mitigate the financial risks of a changing climate. Key risk-management tactics include:
Enhanced risk modelling: Developing more sophisticated risk models that factor in the increasing unpredictability of weather events
Product innovation: Creating products such as index-linked and parametric insurance that aligns with emerging risks, such as the growing vulnerability of crops
Sustainable investments: Contributing to a greener economy by shifting holdings from polluting projects toward environmentally sustainable organizations
Policy advocacy: Engaging with policymakers to shape regulatory frameworks that support adaptation and climate resilience
Education and awareness: Raising public understanding of weather-related risks and the role of insurance in climate adaptation
See more analysis and actionable steps for insurers
Connect with a Milliman climate expert near you
Our actuaries and researchers across Europe continue to study the impact of extreme weather events to help insurers, policymakers, and communities create a sustainable future.
Click on a flag to contact an expert in that country:
Milliman Climate Resilience Initiative
Drawing on our unique expertise in risk, we’ve united leaders from insurance, government, academia, and non-profits to help anticipate and address the most pressing climate problems.
