10 August 2026
Executive Summary
Swiss Re’s chief executive has warned that authorities and businesses have underestimated the human risk created by extreme heat as Europe continues to experience exceptionally severe summer conditions.
Germany’s Robert Koch Institute estimated approximately 11,900 heat-related deaths by late July, largely associated with extreme temperatures earlier in the summer.
Swiss Re said it remains too early to determine the full financial effect of excess mortality upon the insurer, but the comments are significant because they demonstrate how extreme heat is moving beyond environmental reporting and into life, health, liability and business-risk calculations.
Swiss Re’s own research has highlighted how heat can increase mortality, place additional pressure on healthcare systems and create particularly severe risks for ageing populations.
UK Impact
For UK businesses, extreme heat should increasingly be considered within:
- Employer liability.
- Employee welfare.
- Business continuity.
- Travel risk.
- Construction and outdoor working.
- Warehousing.
- Food and pharmaceutical storage.
- Data-centre cooling.
- Power availability.
- Insurance renewal discussions.
Companies operating warehouses, factories or offices designed for historically cooler temperatures may discover that their buildings themselves create a growing operational risk.
The issue also extends to suppliers.
A manufacturer may remain physically undamaged yet lose productivity because workers cannot safely operate machinery under extreme conditions.
Global Impact
Extreme heat can generate losses without a traditional catastrophe such as a flood, fire or storm.
Potential consequences include:
- Reduced employee productivity.
- Increased absenteeism.
- Heat-related illness.
- Higher cooling costs.
- Equipment overheating.
- Power-network strain.
- Spoilage of temperature-sensitive inventory.
- Transport restrictions.
- Reduced construction hours.
- Increased mortality claims.
That creates an important insurance issue because traditional policies do not necessarily respond simply because extreme temperatures make operations more difficult.
The trigger for business-interruption cover may still require insured physical damage.
Our View
Businesses should review heat risk before the next insurance renewal, not after an incident.
Companies should:
- Establish maximum-temperature working procedures.
- Identify employees performing physically demanding or outdoor work.
- Review cooling capacity in factories and warehouses.
- Test backup refrigeration and power systems.
- Monitor temperature-sensitive inventory.
- Check contractual temperature requirements during transportation.
- Review employers’ liability and business-interruption wording.
- Establish procedures for altered working hours.
- Examine heat exposure at critical suppliers.
- Include prolonged heat within business-continuity exercises.
- Keep evidence of risk assessments and mitigation measures.
Boards should also ask a very simple question:
At what temperature does this business stop operating normally?
Many businesses will not currently know the answer.
That is precisely why the risk deserves attention.
Risk Indicator: ELEVATED
Disclaimer
The information contained within these Market Alerts is provided for general market awareness and informational purposes only. It does not constitute financial, legal, investment, regulatory or insurance advice. Whilst every effort has been made to ensure accuracy at the time of publication using multiple reputable and independently verified sources, geopolitical events, legislation, regulation and market conditions may change rapidly. Readers should obtain appropriate professional advice before acting upon any information contained herein.
Invictus Risk Solutions LLP – Helping organisations stay ahead of emerging risks through informed insight and independent analysis.