Hail, drought, floods… Here’s why the cost of home insurance is bound to rise

This time, the person responsible has been identified for a long time: it is climate change. An early drought has just been followed, in the Southwest, by a stormy wave of rare violence. And there are countless floods, landslides and other submersive waves regularly observed… Results: major damage and insurance indemnities up sharply.

“Crazy Inflation”

Among professionals in the sector, the problem is well identified. According to France Assureurs (formerly the French Insurance Federation), claims related to climatic hazards have increased from 1 billion euros per year in the 1980s to nearly 4 billion over the past five years.

“It’s more than just a concern for insurers, warns Olivier Moustacakis, co-founder and CEO of Assurland, an online insurance comparator. France Assureurs estimates that by 2050, cumulatively, the bill for future compensation for climate risks could amount to 143 billion euros! This is to be compared with the 74.1 billion that we had over the period 1989-2019… There is a crazy inflation of the cost of these risks”.

Obviously, someone will have to pay this bill. The Prudential Control and Resolution Authority (ACPR), watchdog of the sector, thus predicts a possible increase in the cost of insurance premiums from 113% to 200% by 2050…

A choice of society

For Olivier Moustacakis, one of the main problems comes from the current compensation system: “The compensation fund for natural disasters (CatNat) is fed by a 12% tax levied on housing contracts, and 6% on other contracts, in particular auto. But this fund is in deficit! The collection represented 1.7 billion in 2020, and in recent years, the bill paid by insurers was around 2.2 billion. This is not a tenable situation. Several experts say that we will have to go from 12 to 18%. »

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