Guest of Franceinfo in October 2024, the general director of MAIF, Pascal Demurger, predicted an 8 to 10% increase in prices on the multi-risk home insurance market in 2025. A direct consequence, he explains, of climate change.
Thierry Derez, head of Covéa, of which the MAAF brand is a part, said nothing else in the spring of 2024 during his press conference to present the group’s results: everything contributes to the fact that in the years to come, prices climb.
Covéa, excluding life insurance, for 100 euros collected, spent 102.7 to reimburse what it owed to policyholders. When 100 euros of contributions fall into the Macif coffers, 104.7 come out to settle claims and ensure the functioning of the company. At MAIF, the 2023 net result was almost divided by four under the cumulative impact of climatic accidents, urban riots and the choice not to increase prices.
Nothing that endangers Niort’s mutual insurance companies. But the profession must adapt to this new situation. The frequency of natural disasters has increased by 46% since the 1980s according to the IPCC (Intergovernmental Panel on Climate). The home insurance bill will in any case increase by 12 to 20% minimum from the 1is January 2025, notes a professional from Niort. Because even apart from the price increases that each insurer could decide, the State will increase on this date, the additional premium which fuels the natural disaster regime: a decree of December 22, 2023 increased its rate from 12 to 20 %.
The inflationary trend will not stop there: this single increase “will not guarantee the balance of the regime in the long term”warns the site vie.publique.fr written by the Directorate of Legal and Administrative Information, attached to the Prime Minister’s services. An automatic revaluation of the additional premium is already scheduled for 1is January 2027.
“The cost of losses from natural disasters should in fact increase by around 40% by 2050 for climate issues alone”underlines vie.publique.fr.
This Niort-based insurer analyzes: “We risk seeing the same phenomenon occur with home insurance that we experienced with the price of energy.”
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