The French public reinsurer CCR suffered a loss of 112 million euros in 2023, the amount of claims having been higher than the premiums received for the natural disaster regime, while damage linked to climate change becomes recurrent.
The Central Reinsurance Fund (CCR), a public institution, manages this scheme by providing insurers with unlimited reinsurance cover when a state of natural disaster is declared by the State.
In 2023, the CCR continues to face losses linked to climate change, which cyclical inflation will worsen. This situation, which has prevailed since 2016, justifies the government’s decision to increase at the end of the year the additional premium dedicated to the Cat Nat scheme, its president Jacques Le Pape declared on Wednesday, quoted in a press release.
The public reinsurance branch, mainly used in the event of natural disasters, suffered a loss of 112 million euros while the total claims amounted to 1.3 billion euros.
The year was marked by the La Laigne earthquake (Charente-Maritime), floods in Hauts-de-France and a drought that was more contained than in 2022 but nonetheless significant for the region.
Added to this is the liquidation of previous financial years, which represents an additional loss of 342 million euros, mainly linked to the 2022 drought, the cost of which has been revalued from 2.9 to 3.5 billion euros for the market, indicates the press release. .
For the seventh year since 2016, CCR had to draw on its reserves and also had to take back the entire 272 million euros of the provision for equalization for natural disasters, constituted during years without a disaster, to cope with this exceptional loss experience.
The increase in the Cat Nat surcharge, which finances the natural disaster regime, from 12% to 20% from 2025 is very good news, which we had called for, also assured the general director of CCR, Edouard Vieillefond.
In the meantime, CCR declares that it will be able to cope with losses of 1.8 billion euros in 2024. The probability of calling on the State as a guarantee in 2024 is estimated at around 15%, the fund assured.