2024-10-23 15:06:00
A public observatory will be launched in spring 2025 to list the areas most exposed to climate change, but also the presence of insurers.
Preventing the French regions most affected by climate change from no longer being covered by insurers: this is the objective of the observatory that will soon be created by the Caisse Centrale de réassurance (CCR), the public reinsurer that manages the natural damage compensation system disasters (known as «nat cat»). This should allow us to better identify the areas most exposed to climate risks. And find out if the companies still insure the houses there.
This observatory, which will be launched in spring 2025, was part of the April recommendations of the Langreney report on the insurability of France, threatened by climate change, which increases the frequency and cost of claims. Its objective is to maintain an insurance offer in the most exposed areas. “There are already fewer insurers and we are starting to see signs of tension in some areas of France, such as in overseas territories that are very exposed to cyclones”, observes Édouard Vieillefond, director general of the RCC.
The observatory will consist of two maps. The first will identify the areas most exposed to floods, drought, clay shrinkage-swelling (RGA) which causes cracks in houses, and tropical cyclones (in the French overseas territories). These three hazards are the main climate risks covered by the scheme «nat cat». The second card will be listed “the market shares of insurers, to see whether they are still present, or not, in tense and less tense areas”explains Édouard Vieillefond. The goal is to ensure that all insurance companies play the common risk game. But the mapping will be anonymous. “The observatory itself is intended to inform the state. We will provide the information anonymously and then the state can decide whether to do something or not.”continues Édouard Vieillefond, who refuses “name and shame”.
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Furthermore, insurers who play the most will be rewarded, remaining very present in the areas most sensitive to climate change. The CCR pays a commission to companies each year in exchange for contributing part of their casualty insurance premiums. This commission in the future will strongly depend on whether or not we remain in the areas of tension.
Another measure recommended by the Langreney mission had already been adopted by the public authorities. At the end of last year, Bercy announced an increase in the contribution of families and businesses to the financing of the public-private compensation plan for natural disasters, which is now running out of steam. From 1 January 2025, the additional premium included in each home insurance policy will increase from 12% to 20% and that applied to car insurance premiums from 6% to 9%. That will automatically increase the price of home and auto insurance next year. Faced with the growing dangers linked to the multiplication of climate disasters, the government may soon announce new measures.
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