The French NATCAT civil protection system is facing a financial reassessment: due to the drastic rise in costs caused by floods, droughts and other natural events, France is increasing the cost of NATCAT from January 1, 2025 the additional premiums for property damage insurance.
- The additional premium for commercial and private insurance will rise from the current 12 % to 20 %.
- For motor vehicle insurance with theft and fire cover, the rate increases from 6 % to 9 %.
NATCAT has been a central pillar of disaster management in France since the 1980s - all property insurance policies must automatically include cover for natural disasters. Reinsurance is provided by Caisse Centrale de Réassurance (CCR), backed by a state guarantee.
The background to the premium increase: In 2022, natural disasters caused damage amounting to around 10 billion €, in 2023 it was around 6.5 billion € - significantly more than the long-term average. As a result, the system has often been running deficits since 2016, with CCR reserves falling by % in the past five years.
What this means for insured persons: From 2025, all holders of corresponding insurance policies will have to expect higher premiums - regardless of whether they personally live in high-risk areas or not. The change affects industrial, commercial, household and motor vehicle policies equally.
Source: NATCAT in France: Important updates, TRC Digit / TrustRC, September 2024. https://trustrc.com/natcat-in-frankreich-wichtige-updates/
Deutsch
English