Second House: More expensive insurance to finance climate risk?

With drought, with frequent floods, without forgetting the increasing weight Claims related to demolished housesThe French insurance system appears to have entered a period of structural deficit. That’s why the Minister of the Economy, Bruno Le Maire, and the Minister of the Ecological Transition, Christophe Bechu, commissioned an expert report to consider reforms. “Insurability of Climate Risks”,

Recalling that the costs of mainly climate-related damages could increase by almost 50% by 2050, the report underlines that this trajectory will put at risk insurers, but also reinsurers and, at the end of the chain, the State. Already, additional premium natural disasters The 12% rate on home insurance is targeted to increase to 20% on January 1, 2025, but this growth already recorded will not be enough.

insurance desert

The office of Thierry Langerany and Bruno Le Maire, one of the report’s authors, have stressed their desire to preserve pooling among policyholders, whatever the degree of risk. Target? Avoid penalizing certain areas when seeking a viable balance for insurers. Thus the idea would be to regulate the contribution on “natural calamity” premium according to the potential hazards in each area, without affecting the overall scope. This system should allow insurers to avoid risk areas, some of which may become “insurance deserts”.

But if the report focuses on solidarity and equal treatment of all, it still distinguishes three types of assets whose owners may be asked to contribute more: second homes, rental housing and professional. Property “with high insurance value” (over 20 million euros). The latter would be asked to contribute more strongly to the prevention component., “A simple way to significantly increase the incentive to invest is to retain the obligation to insure for the benefit of these categories, while freeing up rates (i.e. the level of cat net surcharge) and deductions, hence the overall price signal. Provides that the insured can receive”, outlines the report. It has been emphasized by the Government that no alternative has been made yet and “Consultations will be held until the end of the summer to examine the measures to be taken.

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