As European temperatures break records, a number of players need to work together to build climate resilience, with the insurance and reinsurance industry acting as a “translator of risk” to help unite fragmented adaptation efforts, CUO P&C Re Gianfranco Lot highlighted at Swiss Re’s first Swiss Resilience Day.
The summit, held at the Swiss Re Centre for Global Dialogue in Rüschlikon, Switzerland, marked the official launch of the reinsurer’s “Resilient Switzerland” initiative.
The launch comes at a critical juncture for the alpine nation, as Switzerland is warming significantly faster than both the European and global averages, according to data revealed at the summit.
Switzerland has historically enjoyed a reputation as one of the world’s most stable economies, yet it faces deep vulnerabilities in its infrastructure and public services, Lot noted.
“Amid calls from Swiss teachers’ unions to address overheated classrooms and transportation delays that came as high temperatures deformed railway tracks; however, it is clear the heat that Switzerland is experiencing today is not simply the arrival of summer as we once knew it. The data tells us things have changed: hot days above 30°C have increased from around five per year in 1990 to about 10–15 today,” said the executive.
The shift in temperature has triggered severe systemic shocks across multiple asset classes. For example, infrastructure has been impacted, with extreme heat causing railtracks to deform, motorways to rupture, and even forced the Beznau nuclear power plant to cut power production.
The Blatten rock and ice avalanche of May 2025 is also related to rising temperatures, with scientists believing it may be linked to melting permafrost. This event resulted in an insured loss of around CHF 320 million.
Additionally, heat-related complications are currently costing the Swiss hospital system an estimated CHF 20.6 million annually, a figure that is set to increase according to Lot.
“Risks like extreme heat are complex, exemplifying why resilience can no longer be built in silos,” the executive stated.
Adding: “[Heat] is a risk where the burden is often not shared equally. And it is a governance risk, because effectively adapting to extreme heat depends on decisions made across different levels of responsibility.
“At Swiss Re, we have spent more than 160 years analysing risk. Our Swiss roots combined with our global perspective give us both an opportunity and a responsibility: to help make risk more visible, comparable and actionable. As such, we believe we have a role to play in building Switzerland’s resilience – to help the right stakeholders and decision-makers find each other.”
Lot emphasised that while adaptation measures must be executed locally by municipalities, local actors cannot bear the financial or analytical burden alone.
“While resilience is created locally – with municipalities close to the people, infrastructure and public space most impacted – it cannot be left to local actors alone. They need to be supported by strong partners, usable data and a common language of risk,” he stated.
While re/insurers can not solve heat on their own, but risk transfer, risk modelling and the price signals sent by insurance that help quantify risk can all support prevention, adaptation and recovery.
Lot concluded: “Resilience is a continuous task, one that’s never completed. From our discussions in Rüschlikon to municipalities across the country, the next step is to translate our growing understanding into shared action.”
