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

This time, the person in charge has been identified for a long time: this is climate change. An early drought has just been followed in the Southwest by a storm surge of rare violence. And there are countless floods, landslides and other regularly submerged waves … Rezultate: major damage and rising insurance premiums.

“Crazy inflation”

Among industry professionals, the problem is well identified. According to France Assureurs (formerly the French Insurance Federation), claims related to climate hazards have risen from € 1 billion a year in the 1980s to almost € 4 billion in the last five years.

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

Someone will have to pay this bill. The Prudential Supervision and Resolution Authority (ACPR), the gendarme 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 Natural Disaster Compensation Fund (CatNat) is funded by a 12% tax on housing contracts, and a 6% tax on other contracts, especially cars. But this fund is in deficit! The collection amounted to 1.7 billion in 2020, and in recent years, the bill paid by insurers was about 2.2 billion. This is not a sustainable situation. Several experts say it will have to go from 12% to 18%. »

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