bad weather for the insurance world

by time news

France should experience one of its worst years in terms of climate disasters in 2022, with damage already estimated at 4.6 billion euros between January and the end of August.

And it’s not over. Between 2020 and 2050, the annual average to be paid could be around 4.7 billion, which would represent a doubling compared to the period 1990-2020, according to projections by France Assureurs, the new name of the employers’ federation.

A multiplication of climatic events

The subject is obviously not only hexagonal, but planetary. It is moreover the continuous chain of disorders, everywhere in the world, which worries so much, explain the reinsurers (the insurers of the insurers), who have just met in Monaco for their annual seminar. To the point that some of them plan to cover less climate risks, under penalty, they say, of undermining their economic model.

Natural disasters thus generated a cost of 72 billion euros worldwide in the first half of the year, half of which was borne by insurers and reinsurers, estimates Swiss Re, one of the giants in the sector.

The increase in bills will therefore continue. In recent years, reinsurance rates have been revised upwards, which is pushing insurers to pass on these increases to their customers, even if the competitive context is somewhat slowing down the movement. This is the reason why some people are calling for a general increase in the tax that funds the regime. Natural disasters».

Tense discussions with the government

But in this period of inflation, discussions with the public authorities promise to be lively. The Minister of the Economy, Bruno Le Maire, who receives representatives of the sector this week, is already asking them to show tariff moderation.

In response, professionals warn that home insurance should increase, especially for homes that are located in risky areas, such as those subject to flooding or threatened by wildfires.

To lower the rates on certain activities, insurers are asking for compensation, such as the use of second-hand parts to reduce the cost of car repairs or even for Social Security to stop transferring charges to mutual insurance companies and reduce taxes on health supplements. They alone would represent more than two months of contributions.

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