Natural disasters, riots… Some cities are finding it increasingly difficult to insure

2023-10-23 05:36:13

Margaux Fodéré / Photo credit: OLIVIER CHASSIGNOLE / AFP
7:36 a.m., October 23, 2023

Riots, climatic events… Until now, many municipalities were insured in the event of damage to public property. But for how much longer? Some cities have seen their insurance deductibles explode. Between rising prices and fewer and fewer insurers, some municipalities are finding it more and more difficult to obtain insurance.

With the increase in claims to be covered, particularly with climatic risks or with riots, insurers are strengthening underwriting conditions. Contacted by Europe 1, Smacl Assurance SA, a subsidiary of Maif, recognizes that a tightening of terms is inevitable on a case-by-case basis.

An abnormally high volume of calls for tenders

The most likely scenario is that of an increase in deductibles and premiums according to professionals. “There are the communities whose contract is coming to an end, then other communities which have suffered terminations and which, too, are forced to relaunch tender procedures,” explains Ivan Bourasseau from the broker Verspieren. And that’s not all: faced with increasingly frequent disasters, such as urban violence this summer, other insurers are gradually leaving the market.

So much so that in the future, certain communities might be forced to insure themselves, due to lack of supply. “We find ourselves with a volume of calls for tenders to be processed this year which is abnormally high. The insurers, who are fewer in number, will not be able to absorb this workload,” explains Ivan Bourasseau. It is still necessary that communities, obliged to self-insure, have the means. In the event of a major disaster, other budgets will have to be cut.

1698045812
#Natural #disasters #riots.. #cities #finding #increasingly #difficult #insure