Insurance rates likely to rise sharply in 2025

The trend had emerged at the annual meeting of reinsurers in September in Monaco and the figures are starting to leak out. Insurance rates in 2025 will increase in the range of 4 to 6% for automobiles, and 8 to 10% for homes. These are the first estimates made by research companies that are combing through the documents in circulation. For the moment, no insurance professional wants to comment on these figures, without however denying them.

Every year, it’s the same scenario. Insurers explain to you that these price increases are not made to make more and more money, but to cover the increase in what they have to pay out to disaster-stricken customers. Because, every year, disasters and losses are more and more significant. Faced with the increase in climatic events, it is increasingly difficult to define a price for risks related to flooding in particular.

For example, the premium that finances the natural disaster regime will increase on January 1st from 12 to 20% for home insurance. The decree was published in the Official Journal last December. On our bills, this will represent an annual increase of 17 euros for individuals. And this, regardless of our level of exposure to risk, in the name of price pooling. Which does not prevent certain insurance companies from further increasing the rates of multi-risk home insurance for houses and houses more exposed to flooding than an apartment located on the eighth floor of a building.

To avoid any slippage, the Banque de France keeps a close eye on things, thanks in particular to a structure, the Prudential Supervision and Resolution Authority (ACPR). Everything is public on the Banque de France website, which you can consult if you have the slightest doubt about the conditions of your contracts and, above all, the mechanisms for reviewing certain clauses that your insurer has made you sign.