After the passage of the two storms Ciaran and Domingos, it is time to take stock. Nearly 300,000 claims have been registered for a bill of between 650 and 750 million euros.
A high amount but far from the damage caused by the big storms of recent years such as Xynthia in 2010 (1.5 billion euros), Klauss in 2009 (1.7 billion), without even mentioning the Lothar and Martin disaster in 1999 and its bill of 7 billion (in constant euros).
But losses from the recent storms will continue to add to a bill that has continued to rise for several years.
A claim cost multiplied by 2 in the next 30 years
Because most disasters are not these impressive storms. It is the drought that causes the clay soils to move, cracking the houses, or the hail and extreme heat that have been destroying crops for several years.
In four decades, the costs related to climate hazards have increased significantly.
From €1.5 billion a year (taking into account inflation) in the late 1980s, it has continued to rise to reach €3.6 billion over the previous decade. Without even taking into account thehorrible year a past marked by fires and its record bill of 10.6 billion euros.
And yet, this would only be the beginning. According to the Insurance Federation, the total cost of these climate change-related claims will double over the next 30 years.
A surcharge increased from 5.5 to 12%
This will inevitably lead to increases in insurance premiums. Which has already started with average increases of 5% in 2023 and an increase of around 6% expected for next year. Because we must remember, the French system is one of the most protective in the world in a state of natural disaster.
Who says protective, says expensive. To finance this system, policyholders pay a surcharge included in their premium. Initially 5.5% for home insurance, it has continued to increase in recent years until reaching 12%. And in 2025, the government would like to increase it to 22% (insurers advocate 18%).
In any case, there will be an increase. Because this “fund” for natural disasters, which has a deficit of 1.8 billion euros by 2022, will be put to the test in the coming decades.
But a more serious risk looms over this protection system: the refusal of insurers to protect property in the future. What is already happening in certain territories where the risk of disaster is high. Coastal areas, prone to drought, built on clay soils… Companies do not turn away customers, but offer deliberately discouraging conditions. Premiums almost doubled for new policyholders, lengthy procedures to prove that a crack or hailstorm is really related to climate change, reimbursements that take years to be made… Enough to limit the risk by discouraging policyholders. With cost increases in the coming years, these “insurance deserts” could multiply.
Source: BFM TV
