Insurers Must Take Responsibility for Local Communities, says Renaissance MP Philippe Guillemard

For the Renaissance MP, Philippe Guillemard, insurers must take their responsibilities towards local communities.

The municipalities of Mont-Saint-Martin and Laxou announced that their insurer was terminating their contract on January 1, 2024.

“A blow from a club”, these are the words of mayors Serge De Carli (Mont-Saint-Martin) and Laurent Garcia (Laxou) upon reading the letter from their insurer, Groupama, announcing to them that they are terminating their contract at Next January 1st.

Warned of these situations, the Renaissance deputy for the first constituency of Meurthe-et-Moselle, Philippe Guillemard, sent a question this week to the Minister of Local Authorities and Rural Affairs, expressing his concerns regarding the liability of insurers to regard to local authorities. “These municipalities have seen episodes of urban violence with significant material damage. They undertook major renovation work to repair the damage and restore the operation of public services. The reopening of these damaged public buildings is a priority. However, the cost associated with these repairs constitutes a considerable burden on the budget of local authorities,” indicates the MP.

While the Government reacted by publishing the order of July 26, 2023, aimed at facilitating the reconstruction and repair of damaged public facilities, many insurers seem to have chosen this moment to terminate their contracts with local authorities. This termination has the effect of pushing prices upwards, putting significant additional financial pressure on municipalities, even though they are already suffering.

“This situation is worrying and could push certain communities to abandon taking out an insurance policy, thereby exposing them to insurmountable financial difficulties in the event of unforeseen events. This calls into question the essential role of insurance in our solidarity system in terms of risk management. This context highlights the need for insurers to take their responsibilities towards local communities,” he explains.

What measures does the government plan to take to support local authorities which find themselves in difficulty? MP Guillemard promises to be attentive to developments on the subject.