French Insurance Premiums for Natural Disasters Set to Increase to 20% from 2025

A decree published this Thursday, December 28 in the official journal ratifies the increase in the cost of insurance for natural disasters from 2025. The additional premium which finances this scheme will increase from 12% to 20% for homes.

After a year marked by storms Ciaran and Domingos, responsible for very costly damage, the cost of insurance linked to natural disasters will increase. A decree published this Thursday, December 28 in the Official Journal states that the additional premium which finances the natural disaster regime of French insurers will be increased from January 1, 2025. It will thus increase from 12% to 20% for homes.

This general increase aims to revive a system that has been in deficit since 2015. It will also increase the surcharge from 12% to 20% for professional insurance contracts, and from 6% to 9% for theft and fire contracts. According to the Ministry of the Economy, this increase should constitute an additional windfall of 1.2 billion euros each year. This plan, which costs on average around 25 euros per year per household, will increase “to 41 euros” according to the calculations of Franck Le Vallois, general director of France Assureurs, for whom this increase will “bring the system back into balance”. .

The increase in premiums had been requested by professionals for several months. Faced with the increase in the frequency of storms, droughts and other floods due to climate change, the natural disaster regime has been in deficit since 2015. For example: Wednesday November 22, the Central Reinsurance Fund (CCR) estimated this Wednesday 22 November to 550 million euros the cost of the floods in the north of France. A sum covered under the natural disaster regime in Hauts-de-France, half of which is at your expense.

By granting an increase to 20% on the majority of contracts in 2025, Bercy is roughly aligned with the recommendations of France Assureurs and the Caisse centrale de réassurance (CCR) which respectively advocated 18% and 19% from 2024, the CCR in anticipation of an increase to 22% in the future. “We have been raising this point for a long time,” notes Antoine Quentin, director of reinsurance and public funds at the CCR, who considers this news “as a good thing to perpetuate the system.”

2023-12-28 18:11:08
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