Europe¡¯s insurers are bracing for a new era of catastrophe risk fanned by rising temperatures in the world¡¯s fastest-warming continent.

Insurers, reinsurers and brokers who were?contacted said they are already predicting increased premiums and bigger losses tied to natural catastrophes. Importantly, they don¡¯t see the latest bouts of extreme heat as a temporary shock, but as a long-term trend.

The industry is ¡°actively evaluating¡± the extent to which the rise in temperatures ¡°represents a fundamental shift in Europe¡¯s catastrophe risk landscape,¡± said Will Bruce, global head of climate risk consulting for Aon PLC, the world¡¯s second-largest insurance broker.