Natural catastrophe insurance in France: rates to increase in 2025

Pursuant to a Decree dated 22 December 2023 and published in the Official Gazette, insurance rates for natural catastrophe risks in France will be raised effective 1 January 2025.

The additional premium levied on property damage policies, will go from 12% to 20% for home and business policies, and from 6% to 9% for theft and fire coverage.

This increase is intended to rebalance the natural catastrophe compensation scheme, which has been running a deficit since 2015 due to the increasingly frequent occurrence of climatic hazards.

According to France Assureurs, this scheme will now cost 41 EUR (45.5 USD) annually per household, as opposed to the current 25 EUR (27.7 USD).