(Reuters) – Austria’s second largest insurer Uniqa might have to stop insuring certain regions, CEO Andreas Brandstetter told Reuters on Thursday, as it faces rising pay outs thanks to extreme weather events.
“We have to think carefully about which products we offer where and at what price”, Brandstetter said without going into further detail.
“We expect extreme weather events to increasingly weigh on our results in the coming years”, he added.
In Austria, such events now caused a billion euros ($1.11 billion) worth of damage a year, up from 400 million twenty years ago, according to the CEO.
Uniqa paid out over 180 million euros as a result of extreme weather events last year, the third-highest figure in its history.
The firm can also expect 20 million customers in the future, up from 17 million now, by targeting expansion in eastern Europe, Brandstetter said, adding that Uniqa would further invest a “three-digit million euro sum” in the healthcare sector over the next five years.
It has already acquired a Polish telemedicine provider and was also investing in elderly care, Brandstetter said.
($1 = 0.9004 euros)
(Reporting by Alexandra Schwarz-Goerlich, writing by Louis van Boxel-Woolf, editing by Rachel More)
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