Official maps to show where homes are most at risk of climate damage in France
Damage from flooding and the effects of drought on homes is becoming increasingly common
Structural damage to homes due to climate change is becoming more common
Agenturfotografin/Shutterstock
People in France should soon be able to consult maps that show areas that are tougher to insure and at higher risk for natural disasters.
It comes after the state insurance office la Caisse Centrale de Réassurance (CCR) created a new insurance observatory, which will enable the development of maps showing areas at a higher risk of ‘natural disaster’ events, such as flooding, as relevant to home insurance policies.
The CCR is a public institution that provides insurers with unlimited reinsurance cover when a state of catastrophe naturelle (‘cat nat’, natural disaster) is declared by the state.
The new observatory will begin monitoring insurers in the most at-risk areas from the first half of 2025, the CCR said. It has also said that the observatory will enable it to better support insurers who continue to support policyholders in at-risk areas, and highlight insurers that could be doing more.
The aim is to make the public-private system more sustainable, after the CCR suffered a loss of €112 million in 2023, as the number of claims exceeded the premiums received via the natural catastrophe scheme.
Damage linked to climate change - such as flooding, and the effects of drought on the ground - is becoming increasingly common.
Read also: 300 French communes declared disaster zones for floods and drought
Maps for three types of ‘weather event’
The new maps are set to show the risks of three major weather events:
Areas most vulnerable to flooding
Areas most vulnerable to the shrinkage and expansion of clay ground (retrait-gonflement des argiles, RGA) during periods of drought
Areas most vulnerable to tropical cyclones (in overseas departments and territories).
These are the three main climate change-associated risks covered by the national catastrophe naturelle scheme.
It also applies to damage caused by events such as earthquakes and volcanic eruptions, but not typically to storm or hail damage in mainland France.
Read also: France’s ‘catastrophe naturelle’ insurance system: how to claim
The maps will be based on data from CCR and external sources, including the Bureau de recherches géologiques et minières (BRGM).
It is intended to be more comprehensive than the current risk prevention plans drawn up by local authorities. These have been found to be of varying quality, if they exist at all.
CCR's second map will record insurers’ market shares, to see whether or not they are still active and present in under-pressure areas, the CCR said. The analysis will initially focus on single-family homes and will not cover business property insurance.
CCR chief executive, Edouard Viellefond, said that the aim was not to ‘name and shame’ insurers, but to help reward those who are doing the most, help smaller companies that need it, and identify those that are absent in difficult areas.
The CCR pays insurance companies a commission each year, in exchange for the contribution of part of their premiums.
Catastrophe naturelle surcharge increase
The creation of the observatory comes after former insurance boss Thierry Langreney was commissioned to carry out a study into the insurability of climatic risks. In April, he submitted the report, which contained a number of recommendations.
As well as the recommendation to set up an observatory, the report also suggested an increase of the ‘catastrophe naturelle’ surcharge from 12% to 20% for all insured people.
If it goes ahead as expected, this will be the first time that the surcharge will be increased in 25 years.
This extra charge is likely to contribute to the much-anticipated rise in the price of insurance for homes, cars and business property from January 1, 2025.
Discussions on ways to increase the sustainability of the system are set to resume before the end of the month, with the presentation of a new plan called le plan national d'adaptation au changement climatique (PNACC), and the examination of a specific law on the issue in the Senate.
Mr Vieillefond, CCR chief executive, said: “The observatory [action] itself will consist of informing the state. We provide this information... and then the state can decide whether or not to take action.”
