Rising Insurance Costs for Public Property Damage Worries French Mayors

As communities face more and more damaged public property, insurance companies no longer respond to calls for tenders or offer contracts at exorbitant prices. This situation worries the association of mayors of France.

Bills are rising for local authorities. Insurance company contracts have increased by 700%.

Around twenty municipalities in Haute-Vienne are encountering difficulties in their search for an insurance provider.

The town of Palais-sur-Vienne has, for example, 6,000 inhabitants and several municipal buildings including three schools and party halls, media libraries and two stadiums. It has subscribed to insurance contracts which are expiring and which must be renegotiated.

“It’s complicated because we launch market offers to renew our insurance contracts. Insurance companies do not respond in a timely manner, confides Ludovic Giraudie, mayor (PS) of the town. Il It is then necessary to revive the markets. In the meantime, our contract is running. Our current insurer does not wish to extend the duration of the contract, because according to him, the community would cost the insured too much.”

We therefore went from €6,000 to €100,000. With a deductible of €100,000.

Bastien Pery, general director of city services at Palais-sur-Vienne

France 3 Limousin

When the few insurance companies respond to calls for tenders, they surprise town halls by offering contracts at prices never before reached. “We even had a proposal from our former service provider, who did not want to renew the contract, at €100,000. We therefore went from €6,000 to €100,000. With a deductible of €100,000”, says Bastien Pery, general director of city services at Palais-sur-Vienne.

The situation is becoming such that elected officials want to share their difficulties with the Minister of the Economy, Bruno Lemaire. They are determined to put the subject on the table during the Congress of Mayors of France, next November 20.

“It’s becoming very tense. Perhaps we should think about whether specific community insurance is created,” hopes Fabrice Gerville-Reache, mayor of Nexon (PS) and treasurer of ADM87

Perhaps we should think about whether a specific community insurance comes into being.

Fabrice Gerville-Reache, mayor of Nexon (PS) and treasurer of ADM87

France 3 Limousin

How can these increases be explained?

The increase in prices of insurance companies would have the effect of causes the multiplication of disasters, explains Pierre Jandeaux, member of the 87 insurance documentation and information center:

“Since 2005, local authorities have suffered a lot of losses. There have been riots, popular movements and, more recently, climatic hazards. Added to this, the statutory risks with absenteeism (in the event of illness or accident of a community agent, certain costs may be borne by the community, editor’s note.)“

However, the situation should improve within three to five years, according to insurance experts.