Towards an increase in motor and homeowner's insurance rates in France

The consulting firm Facts & Figures expects an average increase of 3 to 5% in motor rates in 2023. This increase will be driven by several factors, including the rising number of claims, the surge in SUV (Sport Utility Vehicle) registrations, the continuing integration of electronic components in vehicles, and the higher costs of spare parts and labor.

The cost of homeowner's insurance is expected to rise by 3% in 2023. The growing number of natural disasters (floods, hailstorms, storms and fires) and the soaring cost of building materials and skilled labor in the construction industry explain the drift in homeowner's insurance rates.

According to Facts & Figures, the growing number of weather-related risks will also lead to an upward revision of reinsurance prices.

During a meeting held on 20 September 2022 with the Minister of the Economy, French insurers undertook to contain the average increase in their rates to a level below inflation.