The cost of climate change for insurers: €492 million in 2025

BarcelonaClimate change has a direct cost to insurance companiesThe figures are clear: in 2025, insurance companies in Spain paid €492 million for claims directly related to climate change; specifically, 628,800 claims, according to data released this Monday by the industry association, Unespa. However, this figure is below the average of recent years, which amounts to around €800 million annually. According to the association, last year the equivalent of 1,723 incidents and €1.34 million in costs were recorded every day, with an average cost per incident of €783, according to data collected by Unespa. Various institutions participate in managing damages caused by natural phenomena. Most claims—such as those resulting from snow, hail, rain, or winds below 120 km/h—are covered by private insurers. For its part, the Insurance Compensation Consortium intervenes when floods, storm surges, sustained winds exceeding 120 km/h – known as atypical cyclonic storms (ACS) – or geological events such as earthquakes or volcanic eruptions occur. These events are considered "extraordinary phenomena." Unespa's data refers exclusively to weather-related claims that correspond to insurance payouts. The breakdown by insurance sector indicates that homes were the most affected, accounting for two-thirds of weather-related claims (407,885 incidents), followed by homeowners' associations (123,024 claims) and automobiles (43,265). Households also accounted for the largest share of payouts, with €213 million (43.3% of the total), followed by industries, with €114 million, and automobiles, with another €77 million. Although multi-risk insurance has the highest volume of policies for homes, the most expensive claims, from an economic standpoint, were registered in industries, according to Unespa. In this sector, the average cost amounted to €3,532 per claim, compared to an average of €523 for households. If the comparison is made based on the natural phenomenon causing the damage, hail stands out—with an average cost of €1,814—and wind, with an average of €739. In absolute terms, however, the impact of rain is significant. This atmospheric phenomenon accounted for more than 58% of all claims and more than 36% of total payouts (€178 million). Hail damage was also significant, representing 17.7% of claims and 41.1% of payouts (€202 million). Wind, meanwhile, accounted for slightly less than a quarter of claims and payouts (€111 million). The impact of snow was minimal in 2025.

Extreme Cases

One of the most relevant aspects of the analysis is the behavior of the most severe cases. These claims illustrate the intensity of certain weather events and the extraordinary damage they cause. In industrial multi-risk insurance, for example, extreme cases reached €153,913, while in other multi-risk policies, the peaks reached €113,003. In retail insurance, these claims amounted to €28,950, and in home and automobile insurance, they stood at €13,457 and €13,012, respectively. June 11th was the day with the greatest impact, with €54.2 million in payouts, mostly corresponding to very costly hailstorms. July 12th (€35.2 million) and September 13th (€15.2 million) were also marked by high-intensity hailstorms, which accounted for most of the damage recorded on those dates. In the territorial analysis, the provinces with the highest insurance payouts were Madrid, Barcelona, ​​and Valencia, with €79.2 million, €40.5 million, and €33.3 million, respectively. However, the highest average costs were found in provinces such as Palencia (€2,151 per claim) and Huesca (€2,024), suggesting a significant presence of industrial claims. In terms of the number of incidents, the province of Madrid clearly led the way, with more than 109,500 claims.