Thirty-seven proposals to adapt insurance coverage to local weather change | EUROtoday

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In front of the flooded Allianz insurance premises, in Neuville-sous-Montreuil (Pas-de-Calais), on January 3.

Better finance compensation for pure disasters, take note of variations in publicity to dangers and strengthen prevention: it’s on these three pillars that the French technique for adapting the insurance coverage sector to vary ought to be primarily based local weather, if the federal government validates the method advisable by the professional report printed Tuesday April 2.

After consulting some 150 gamers within the insurance coverage sector, representatives of civil society and researchers, 37 proposals are detailed over 116 pages by the three specialists commissioned, in May 2023, by the ministries of the economic system and transition. ecological: Thierry Langreney, former deputy basic supervisor of the insurance coverage actions of Crédit Agricole and president of the affiliation Les Ateliers du futur, Gonéri Le Cozannet, geographer and contributor to the experiences of the Intergovernmental Panel on Climate Change , and Myriam Merad, analysis director on the National Center for Scientific Research.

At the center of those proposals is the consolidation of the pure catastrophe compensation system, the sustainability of which is at the moment threatened by recurring deficits, which already drive it to recurrently draw on its reserves.

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Climate-related losses (floods, drought, storms and hail) price insurers 6.5 billion euros in 2023, making the classic the third most costly for the sector after 1999 (16.6 billion euros with storms Lothar and Martin) and 2022 (10.6 billion euros, primarily as a consequence of drought and hail), based on the annual report of the France Insurers federation.

Tracking “climate inflation”

According to the work of the Central Reinsurance Fund (CCR), supervisor of the “Cat Nat” scheme, the injury brought on by the disasters lined by it (flood, drought, marine submersion, cyclones, earthquake) may enhance by 40 %, or 811 million euros per 12 months, by 2050, and even 60% taking into consideration the rise within the general worth of insured property.

Without ready for the publication of the report, the federal government introduced, on December 28, 2023, a rise, efficient from 1er January 2025, of the “surcharge” on the insurance coverage contracts which finance the scheme.

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This further premium levied on all complete house insurance coverage contracts will subsequently enhance, in 2025, from 12% to twenty%. Enough to offer the regime with round 1.3 billion euros in further assets annually and enhance its capability to round 3.2 billion euros.

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