Europe’s wildfire ‘protection gap’ is growing, insurers warn

Firefighters conduct works to extinguish wildfires in Agia Paraskevi, West Attica, Greece on August 1, 2026. Anadolu | Anadolu | Getty ImagesAs wildfires, heatwaves, and extreme weather are becoming a permanent feature of European summers, insurers warn that the region faces a growing "protection gap" as disaster recovery costs outpace insurance coverage. A gigantic wildfire ravaging parts of France and Spain began in July and has destroyed over 300,000 acres of land, in what's been described as a "clap of thunder" for the local economies. More recently, Greece saw a wildfire outbreak worsened by 100 km per hour winds.To top it off, the region has seen several heatwaves over the summer that have prompted red alerts, threat-to-life warnings, and droughts, as temperatures have regularly exceeded 104 degrees Fahrenheit.Some of Europe's biggest insurance companies told CNBC this week that the region isn't adequately prepared to deal with the risks of wildfires and weather disasters, leaving a substantial share of financial damage uninsured. Zurich Insurance Group's CEO Mario Greco said all weather risks are insurable, but it is becoming increasingly expensive to deal with the costs. "W...