the price of insurance will increase in 2025

An increase expected for months by insurers. The additional premium which finances the natural disaster regime of French insurers will be increased from 1uh January 2025, increasing from 12% to 20% for homes, according to a decree published Thursday, December 27 in the Official Journal.

This general increase, applicable from 1uh January 2025, aims to revive a system in deficit since 2015. It will also increase the additional premium from 12% to 20% for professional insurance contracts, from 6% to 9% that on theft and fire contracts, constituting thus an additional windfall of 1.2 billion euros per year, according to the Ministry of the Economy.

This scheme, which costs on average around 25 euros per year per household, will pass “at 41 euros” according to the calculations of Franck Le Vallois, general director of France Assureur, for whom this increase “will restore balance” the device.

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The increase in premiums had been requested by professionals for several months. Faced with the increase in the frequency of storms, droughts and other floods due to climate change, the natural disaster regime has been in deficit since 2015.

In agreement with an increase to 20% on the majority of contracts in 2025, Bercy is roughly aligned with the recommendations of France Assureurs and the Caisse centrale de réassurance (CCR) which respectively advocated 18% and 19% from 2024, the CCR in anticipation of an increase to 22% in the future.

“We have been raising this point for a long time”notes Antoine Quantin, director of reinsurance and public funds at the CCR, who considers this news “as a good thing to perpetuate the regime”.

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The World with AFP