France Assureurs: natural catastrophe premiums likely to rise

Florence Lustman, President of France Assureurs, has announced a possible increase in natural catastrophe premiums. The rising number and intensity of destructive events are driving insurers to revise their rates.

The same source pointed out that the compensation scheme for damage caused by natural disasters is in deficit. This situation could lead the government to increase the levy on the related premium by 6%, from 12% to 18%.

It should be noted that France's natural catastrophe coverage scheme is funded by levies of:

• 12% on premiums relating to the basic policy's damage coverage for property other than motor vehicles
• 6% on theft and fire premiums for land motor vehicles (or, failing that, 0.5% of the damage premium).