According to the French Association of Mayors, between 1,000 and 2,000 municipalities in France have already faced terminations of insurance contracts or significant increases in contributions. As environmental risks multiply, Florence Lustman, president of France Assureurs, the French federation of the sector, and Edouard Vieillefond, director general of the Caisse centrale de réassurance (CCR), which insures insurance companies, propose avenues for reflection to maintain the protection of communities, companies and individuals.
Florence Lustman: “We call for the construction of a national risk prevention strategy, in collaboration with public powers”
“The increase in extreme weather events, but also the explosion in repair costs, automatically leads to an increase in insurance premiums. However, the French insurance market, the largest in Europe, is competitive and this limits price increases. However, it is true that a number of municipalities were offered raises during the renewal of their contracts. Some are no longer insured, we know this very well. That is why we work with the Association of Mayors of France. The objective of this collaboration is to ensure that communities are insurable, as long as they carry out prevention activities.
If we want to limit losses, we must implement effective prevention policies. In this area we still have significant room for maneuver. Around 80% of French people surveyed say they are very aware of natural risks, but less than 40% say they are prepared for them. Local authorities, for their part, only 40% have a prevention plan. To this end, France Assureurs calls for the construction of a national risk prevention strategy, in collaboration with public authorities.
Helping clients, convincing them to adapt, is part of our job, from the moment they sign the contracts. The Barnier fund – financed each year with 12% of the additional premium from contributions from individuals and companies dedicated to financing the natural disaster regime (Cat Nat) – allows financing the works necessary to reduce the vulnerability of homes or professional premises . It also allows communities to purchase higher-risk buildings.
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