The World Bank estimates that only three percent of losses related to catastrophic events in Croatia are insured, while the number of fires and the amount of damages continue to rise year after year.
The financial burden of fires in Croatia has dramatically increased over the last decade, with insurer data showing that settled claims are growing significantly faster than collected premiums. According to data from the Croatian Insurance Bureau, fire and natural disaster insurance premiums rose from €75.2 million in 2015 to €146.1 million in 2024, an increase of 94 percent. In 2025, they reached €160.9 million. Meanwhile, settled claims increased by as much as 139 percent, from €29.2 million to €69.7 million.
Year-on-year growth shows significant fluctuations, stemming from substantial damages recorded in certain years. During 2020, paid claims jumped by 70.5 percent, while in 2023 they rose by as much as 74.7 percent. Statistical data from Hanfa, which combines fire insurance and other types of property insurance, indicate an increase in the loss ratio, from approximately 83.2 percent in 2024 to 86.9 percent in 2025. In other words, for every €100 of premiums collected in that category during 2025, nearly €87 went toward settled claims, while a year earlier that amount was approximately €83.
That the season would be challenging was hinted at as early as late June when a red alert was issued for Croatia due to the heatwave sweeping Europe. Data from the Croatian Firefighting Association show that by August 10, 5,575 outdoor fires had been recorded in Croatia, 13 percent more compared to the same period last year. Even before the catastrophic fire in Omiš, the area affected by fire in Croatia this year was already 75 percent larger compared to the same period last year.
Chief Fire Commander Slavko Tucaković attributes the increase in the number of fires to weather conditions. "The increase can be linked to weather conditions, namely long dry periods with high temperatures that dry out vegetation. This year, we also had several instances of dry thunderstorms, which caused multiple fires in a short period," he recently stated for Poslovni dnevnik.
A dramatic picture is painted by the World Bank's estimate that only about three percent of losses related to major catastrophic events in Croatia are insured. Although this data cannot be directly linked solely to fires, it illustrates how much of the cost of disasters remains outside the insurance system. This cost is borne by citizens and companies from their own funds, with a portion ultimately taken on by the state.
Croatia osiguranje emphasizes that underinsurance is one of the biggest challenges in property insurance, especially for private homes. According to some estimates, only about a quarter of homes are insured, which is why many people rely on state aid and donations after major fires, which often cannot fully cover the damage. The insurer links the rise in claims to increasingly frequent and intense weather extremes, as well as the growing value of insured property.
"At the same time, the total amount of claims is also rising, which is linked to higher values of insured property and increased reconstruction and remediation costs. We are seeing the most pronounced growth in areas affected by fires and other weather disasters," Croatia osiguranje stated.
That climate change increases the risk of extreme heat, and thus fires, is also shown by an analysis from the international group of climatologists World Weather Attribution (WWA). In late June, scientists concluded that the then-record European heatwave would have been "virtually impossible" without human-induced climate change.
An analysis by the Financial Times shows that so far during the European fire season this year, nearly 500,000 hectares have burned, and in the first two months alone, damages exceeded €3 billion. That amount is already higher than the European Commission's estimate of average annual costs of forest fires across the entire European Union. According to the record of damages caused by natural disasters, the total reported damages in Croatia during 2025 amounted to €342.45 million. The register covers all natural disasters, not just fires, so it is not possible to extract the annual amount for fires from it. Additionally, these are reported damages resulting from declared natural disasters, meaning that a portion of economic costs remains outside the statistics.
Insurance is not the only solution. It can provide coverage for financial losses from fires but does not reduce the risk itself. Therefore, in addition to increasing insurance coverage, investments in firefighting infrastructure, land maintenance, and preventive measures will be equally crucial, as climate risk increasingly becomes a financial burden for individuals, companies, and the state.
