Wildfires Are Ravaging Europe. Insurers Are Warning Of A Rising 'Protection Gap'

With wildfires ravaging France and Spain, insurers are warning that the costs of such disasters are increasingly outpacing insurance coverage. CNBC reported that Swiss Re's Chief Financial Officer Anders Malmström warned of the growing "protection gap." Malmström said that, in terms of natural disasters, Europe lags behind in protecting itself when compared to the U.S. or Australia. "There is still a protection gap, particularly in Europe, which means there's a lot of wealth here, but it's not protected through insurance. Malmström told CNBC that more people and wealth have flowed into vulnerable areas, increasing potential cost and risk.