Natural disaster insurance in France
Evolution of the average cost of natural disaster claims in France
| Period | Average annual cost |
|---|---|
| 1984-1989 | 1,2 billion EUR |
| 1990-2009 (1) | 2 billion EUR |
| 2010-2019 | 2,8 billion EUR |
| 2016-2020 | 3,6 billion EUR |
(1) Excluding the Lothar and Martin storms of 1999, which cost 12 billion EUR (cost in constant euros at the end of 2019)
From 2010 to 2019, the year 2017 was marked by a record loss experience. Hurricanes Irma and Maria, which hit the French West Indies, significantly worsened the loss ratio of this class of business which was set at 181.6%, while the combined ratio reached an all-time high of 201.4%.
The upward trend in natural catastrophe claims continued in 2018, 2019 and 2020. It is characterized by the recurrence of severe droughts, which cost insurers more than 600 million EUR per year, and by the high frequency of devastating floods. The bill will, therefore, amount to 2.2 billion EUR in 2019 (+46% compared with 2018) and 3.1 billion EUR in 2020 (+41%).
France: main highlights of the natural disaster class of business (2010-2020)
In millions EUR| 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
Natural disaster premiums (1) | 1 351 | 1 418 | 1 486 | 1 520 | 1 555 | 1 583 | 1 593 | 1 604 | 1 623 | 1 673 | 1700 |
Incurred losses | 1400 | 600 | 800 | 600 | 800 | 1 000 | 1 300 | 2 900 | 1 500 | 2 200 | 3100 |
Gross loss ratio | 103.6% | 42.3% | 53.8% | 39.5% | 53.9% | 60.3% | 79.2% | 181.6% | 95.2% | 129.0% | 182% |
Management expenses ratio | 20.4% | 19.7% | 13.2% | 17.5% | 17.4% | 18.9% | 18.7% | 19.8% | 19.3% | 19.9% | ND |
Gross combined ratio | 124.0% | 62.0% | 67.0% | 57.0% | 71.3% | 79.2% | 97.9% | 201.4% | 114.5% | 148.9% | ND |
(1) Floods, droughts, earthquakes
NA: Not available
Read also | Major natural disasters that occurred in France
