For 2023, insurers had made a commitment to the Minister of the Economy, Bruno Le Maire, to maintain price increases ” on average “ below the level of inflation. Either, according to latest INSEE forecasts, 5%. Prices have risen by 2% to 3% in cars, 4% to 5% in housing and 5% to 6% in health this year, on average, according to estimates by Facts & Figures. “The companies kept their promise. But, beware, their commitment related to existing contracts and not to new ones”says Cyrille Chartier-Kastler, founder of this consulting firm.
This trend should continue, other increases in auto, home and even health insurance prices are foreseeable for 2024. Because, whatever the sector, bad news is legion. The main thorn in the side of insurers: climate change. The year 2022 has been a annus horribilis, with a drought that cracked the houses and episodes of hail that damaged buildings and vehicles.
“There is no miracle: if the costs increase, it translates into higher prices for the customer”, notes Olivier Moustacakis, managing director of the comparator Assurland. The professional federation France Assureurs estimates at 10.6 billion euros the bill for climate events in 2022, compared to an average of 3.6 billion euros between 2011 and 2021.
“The cumulative amount of claims related to natural events could reach 143 billion euros, between 2020 and 2050, i.e. double the compensation for the period 1989-2019”adds Florence Lustman, president of France Assureurs, who recommends “strengthen preventive actions”, “the best disaster being the one we avoided”. In particular, it proposes the creation of a national day of resilience, in order to make the French aware of climate risks.
Spare parts cost
In car insurance, in addition to climate risk, rates are driven up by the explosion in the price of repairs. The cost of spare parts soared by 9.6% in 2022, reports a study by France Assureurs published in March. “One solution is to promote the use of reused parts, which are still too marginal today. Insurers support this measure taken by Bercy, but it takes time”, says Christian de Boissieu, general manager of Abeille IARD (fires, accidents and various risks) and health. The rate of use of recycled parts thus reaches only 27% when the repair is carried out by a professional.
You have 63.9% of this article left to read. The following is for subscribers only.