Between climate crisis and cyberattacks: Europe’s prosperity must be newly secured

When storms devastate entire regions or hackers bring production chains to a standstill, insurers cover more than just damages. They stabilize Europe’s prosperity. In 2024 alone, the industry paid out more than €68 billion in property and casualty insurance. “That’s around €130,000 per minute,” says Jörg Asmussen, CEO of the German Insurance Association (GDV). At the same time, over €100 billion flowed to citizens from life and pension insurance. Behind these figures stands an important backbone of the European economy.

With its new brochure “Prepare. Protect. Prosper.”, the German insurance industry paints a clear picture: Europe’s risk landscape is changing rapidly. “From climate change and cyber threats to demographic shifts, resilience must become a central principle of EU policy,” says Asmussen. And he warns: “Simply reacting to crises is no longer enough.”

Europe must act more proactively

There is a dangerous gap between risk awareness and political action. Although numerous strategies exist at the EU level, they often stall in implementation. Damage from extreme weather has multiplied over recent decades, rising from around €8.6 billion annually in the 1980s to more than €40 billion today.

Insurers are therefore calling for a rethinking of resilience—not as a reaction, but as a guiding principle of forward-looking policy. “Resilience means finally making prevention the norm,” Asmussen emphasizes.

Insurers as key players

Insurers see themselves not only as payers of claims, but as builders of resilience. Their knowledge of risks, financial strength, and long-term investments make them systemically important partners in Europe’s resilience policy.

In climate protection, for example, high-resolution risk maps provide the basis for safer urban planning and damage prevention. In the digital sphere, insurers help companies analyze cyber risks, build prevention strategies, and defend against attacks. This is a crucial safety net, especially for small and medium-sized enterprises.

Structural risk from an aging population

In addition to acute threats, a creeping risk is growing: demographic change. Fewer and fewer workers must finance more and more retirees. This is a burden that could threaten Europe’s long-term social stability.

Capital market-based pension products can help close coverage gaps and ensure intergenerational fairness. “Insurers give citizens the opportunity to better manage financial and personal risks throughout their entire lives,” said Asmussen.

Billions for stability and the future

With around €1.9 trillion in assets under management and annual investments in the hundreds of billions—among others in infrastructure and renewable energy—the industry acts as a stabilizing anchor. These long-term commitments create growth and strengthen Europe’s economic resilience.

Resilience as a political mandate

The insurance industry’s appeal is clear: resilience must not remain a buzzword. It must become a guiding principle of European policy, with clear rules, binding measures, and stronger involvement of private actors.

Because in the future, Europe’s prosperity will not be measured by how quickly damage is repaired, but by how wisely it is prevented.