Extreme heat now deadlier than earthquakes, hurricanes – Swiss Re

Threat claims nearly half a million lives each year

Extreme heat is emerging as one of the most dangerous and costly threats facing the planet, claiming nearly half a million lives each year – more than the annual death toll from floods, earthquakes, and hurricanes combined – according to Swiss Re’s latest SONAR risk report.

The reinsurance giant's 2025 edition of the report identifies escalating temperatures as a critical global risk, with wide-reaching effects not only on human health but across sectors such as energy, telecommunications, and insurance.  

"Extreme heat used to be considered the 'invisible peril' because the impacts are not as obvious as of other natural perils," said Jérôme Haegeli, Swiss Re's group chief economist. "With a clear trend to longer, hotter heat waves, it is important we shine a light on the true cost to human life, our economy, infrastructure, agriculture and healthcare system." 

A growing threat

 

The report cites compelling data, including July 2024's record-breaking global temperatures – the hottest three consecutive days ever documented. In the US, heatwaves have tripled in frequency since the 1960s, are nearly one degree hotter, and last roughly a day longer. 

Health implications are among the most alarming. Roughly 480,000 deaths each year are now attributed to heat-related causes. The physical effects range from heatstroke and organ failure to aggravated cardiovascular and respiratory conditions. Vulnerable groups such as the elderly and pregnant women are particularly at risk. 

Economic and industrial impacts 

Extreme heat is also straining industries. Telecommunications infrastructure is at risk due to overheating data centers and damaged ground cables. Simultaneously, hotter and windier conditions are fueling more destructive wildfire seasons, with global insured wildfire losses reaching US$78.5 billion between 2015 and 2024. 

Legal exposure is another growing concern. Companies and institutions are increasingly being taken to court over their role – or inaction – in climate-related harms. A 2021 lawsuit in the US, for instance, sought US$52 billion in damages from fossil fuel firms for alleged contributions to climate-induced disasters. 

Risks on the rise 

Swiss Re’s analysis also links extreme heat to a wider range of emerging threats. These include the proliferation of heat-loving pathogens like toxic fungi and rising instances of crop failure. Workplace safety is another area of concern, with more claims anticipated under workers’ compensation systems due to prolonged exposure to high temperatures. 

The report goes beyond climate concerns, flagging structural risks like eroding trust in institutions, shifting mortality patterns, and the rising costs of litigation. 

AI: A new frontier of risk

 

Swiss Re also draws attention to the accelerating risks associated with artificial intelligence. The number of AI-related incidents rose by more than 60% between 2023 and 2024, with about a third resulting from system failures. The insurance sector is still in the early stages of shaping coverage for AI-specific risks, but analysts emphasize the importance of establishing clear definitions and exclusions.

“Amid an increasingly interconnected risk environment, insurers are having to continuously adjust the scope of their risk horizon,” said Patrick Raaflaub, Swiss Re’s group chief risk officer. “Between the growing risk of extreme heat events, emerging liability risks or the changing scope of AI-related risks, it's clear the conversation must evolve beyond individual topics to examine how large macro trends are now reshaping today’s risk landscape.”  

Source: insurancebusinessmag.com