France: Sharp rise in the tariffs of industrial risks

The insurance premiums of industrial risks increased by more than 10% in 2019. This unprecedented rise brings to an end 15 years of stability and even of low tariffs.

According to experts, several factors account for these soaring prices. First, insurers and reinsurers were severely affected by natural disasters and fire losses in previous years. The second factor is the class actions which increased the profession's losses.

A final significant element pertains to the new Solvency II rules which require insurance companies to inject more funds to cover industrial risks. In the future, this sudden tariff increase for industrial risks could reach 40% for some insurers. As a reminder, the latest price surge (+80%) took place in 2003, after the 9/11 attacks in the United States.