Under the weight of natural disasters, the Banque de France’s Prudential Control and Resolution Authority forecasts an increase in insurance premiums of 130,200% within 30 years. Closer to us, the experts interviewed by MoneyVox expect the Catnat tax, levied on auto and home contracts, to go from 12 to 18% by 2025. Consequence: prices will continue to rise.
The Snat followed the path laid out by the National Assembly by voting last week in favor of a bill which aims to simplify and strengthen the compensation scheme for natural disasters created in 1982. The deadline for declaring a claim is extended to 21 days and emergency rehousing costs are now part of the process. Local references are also provided to accompany the read, who are often overwhelmed by the situation during a flood or storm. Finally this text strengthens the prevention policy and compensation people who are victims of the drought-hydration phenomenon of the soil which can crack homes. A major problem in France, o half of the territory is concerned, which directly influences the evolution of the home insurance premium and … justifies the regular increases in rates according to studies published by Facts & Figures, Addactis, Assurland.com or Meilleurtaux.
To finance the so-called Catnat diet, in deficit since 2015, a mandatory tax is levied on home and auto insurance contracts. According to Article L125-1 of the Insurance Code, this cover covers direct non-insurable material damage having for determining cause the abnormal intensity of a natural agent, when the usual measures taken to prevent this damage have not been taken. could prevent their occurrence or could not be taken. But demand is increasing and nothing is planned to boost revenues.
Auto and home insurance: who will increase their rates in 2022?
6% in 1982, 18% in 2025?
Fixed 6% in 1982 and increased 9% two years later, the Catnat tax is currently 12% on home insurance (and 6% on auto insurance contracts). For how long? Every year, the cost of natural disasters increases. For example, the wave of thunderstorms and floods that hit France during the last fortnight of June will have to be compensated up to 550million euros according to the French Insurance Federation (FFA) to compensate 235,000 claims declared.
And in the years to come the weight of the climatic alas will go crescendo. Floods, drought, land movements, cyclones and hurricanes, earthquakes, avalanches, ruptures or tsunamis will multiply on the plant and those which will take place on French soil will be taken care of by the regime of natural disasters.
The climate is changing all over the world and faster than expected. Even by limiting global warming, natural disasters should multiply, according to the IPCC report published in August. The cost of claims linked to climate change could be multiplied by 5 6 in some French departments by 2050 and several experts interviewed by MoneyVox deem it inevitable to pass the catnat tax at least on home insurance contracts from 12 to 18% per year. horizon 2025 to balance the accounts. According to the Caisse centrale de reassurance (CCR), it will be necessary to quickly compensate 2billion euros paid in compensation in 2021 compared to 1.7billion euros entered into the funds.
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An average premium up by 38 euros
In the meantime, it is the insured who drink. According to Facts & Figures 2022 assumptions, a 1 1.5% increase in home insurance premiums is expected on contracts already signed. Fabien Soccio, insurance spokesperson at Meilleurtaux, confirms for his part a moderate increase when Addactis expects a stronger average + 3.5%. The most optimistic is Olivier Moustacakis with a + 0.2% next year, as in 2021.
A usual increase for several years since the average premium rose from 241 euros per year in 2012 to 279 euros per year, according to Facts & Figures. And which will therefore continue The sector expected it but here we are, says Fabien Soccio. The exceptional becomes normal. The frequency and intensity of climatic hazards is greater. According to him, the rise in premiums will continue for at least ten years, the time that the contracts correspond to the risks. Not to mention that prevention operations or more precise studies of geographic areas could have repercussions on the final invoice.
Over the period 2016-2020, natural disasters cost nearly one billion euros more per year than for the period 2011-2015, reaching an average of 1.7 billion. How much should we expect for 2021-2025? The expected increase in claims and premiums for certain insurance risks is particularly notable: throughout France, claims related to natural disasters increase 2 to 5 times for the most affected departments, premiums would increase by 130,200% over 30 years to cover these losses, estimates the Prudential Control and Resolution Authority (ACPR). Increases that will affect comprehensive home and auto contracts.
To act quickly, the change in the catnat tax rate levied on auto and home contracts will have to be reviewed by the government. For the moment, this is out of the question despite the promise to reform the compensation scheme for natural disasters formulated by Emmanuel Macron after the passage of Hurricane Irma in the West Indies … in 2017.
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