The increase in urban violence in overseas territories has pushed certain insurers to restrict the guarantees covered by their offers. Beyond the choices of insurers, there is also the question of property insurability: in Mayotte, less than 10% of homes are insured.
Four days after Cyclone Chido hit Mayotte, relief efforts are still working in the rubble. Torn roofs, collapsed houses, broken windows, streets littered with trees… These scenes of disaster are reminiscent of the images from New Caledonia last May.
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The damage was caused by riots, not a natural disaster. But for insurers, the result is the same: increased costs and sometimes significant losses. Thus, more and more people are questioning the benefit of continuing to compensate overseas territories.
Removal of “riot” guarantees for businesses
Some insurers have already removed part of the guarantees from their offers. This is the case of Allianz, which has removed “riot” coverage from its contracts for overseas companies. Generali even went further by suspending all new subscriptions from large companies in the Antilles. A direct consequence of the scenes of urban violence which have increased in recent months, and which entail significant costs for insurers, who prefer to limit their presence.
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A situation that worries Hervé Mariton, the president of the Overseas Business Federation. According to him, “companies need insurance to repair the damage” to which they sometimes suffer. “They also need insurance for the future,” he insists at the microphone of Europe 1. He also explains that “if there is no risk of riots”, this then means a difficulty for companies to invest and that it is therefore “all economic life which is at stake”.
An increase in prices for natural risks
On the issue of natural risks, the situation is less problematic thanks to the natural disaster regime partly covered by the State. However, the frequency of claims also toughens contract terms, as Olivier Moustacakis, co-founder of Assurland.com, notes.
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“When you are in a territory that is highly exposed to climatic hazards, to repeated floods, prices increase, as a result of the loss ratio and also because there are fewer insurers who are able to help you offer insurance. But the property must still be insurable. In Mayotte for example, less than 10% of homes are insured, in particular because of their unsanitary conditions.
