Municipalities forced to take out insurance abroad

Saint Lô. Small Normandy town of 19,000 inhabitants. At its head for 3 years, Madam Mayor believed her city had little exposure to social and climate risks. Until November 2023. Storm Ciaran hits Saint-Lo: trees uprooted, public buildings destroyed. The Bouloir room occupied by the city’s fencing club saw his roof fly off. More than 400,000 euros in damage, covered by the city’s insurer. But since January 1, the latter has broken his contract with the town hall. It is perfectly legal and provided for by the insurance code. : “If the risk worsens during the contract, the insurer has the option of either canceling the contract or proposing a new premium amount.”.

Who, today, takes charge of the notion of the risk of municipal heritage?

Emmanuelle Lejeune, mayor (without label) of Saint-Lô (Manche)

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Following this termination, the town hall has been for two months without insurance for property damage. She tried to contact other insurers but the proposals she received saw contributions increase from 70,000 to 250,000 euros per year, deductibles sometimes multiplied by 100. Emmanuelle Lejeune, mayor (without label) of Saint-Lô deplores it: “The mayor cannot say that insuring a property will cost him much more than the property itself. The question must be put on a table. We must consider partnerships with the State. Who, today, takes charge of the notion of the risk of municipal heritage?”

10% of the 35,000 French municipalities would be currently facing contract terminations or sharp increases in insurance premiums, depending on the Association of Mayors of France (AMF).

We can be very critical of foreign insurers, however today, it is not the so-called traditional insurers who are getting them out of trouble.

An insurance broker

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And some municipalities are forced to turn to foreign insurers. According to this insurance broker, French communities are becoming a real market for German, American or Asian companies: “There are insurers who are perhaps a little more intelligent than traditional insurers and who say to themselves: “if you don’t want these risks, we are ready to take the risk”. We can be very critical of these insurers, however today, it is not the so-called traditional insurers who are getting them out of trouble.”

I am angry that no French insurer agrees to insure a French community. It is forgetting that we are a community of the Republic. It’s a question of sovereignty

Didier Lechien, mayor (Horizons) of Dinan (Côtes-d’Armor)

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Calling on a foreign insurer is what the city of Dinan was forced to do. This Breton town is now 50% covered by a Japanese insurer, 50% by American-British insurers. Not cheaper, according to Didier Lechien, mayor (Horizons) of Dinan, but they are the only ones to have agreed to insure the municipality: “I am a little angry that no French insurer agrees to insure a French community. This forgets that we have a public service mission, that we are a community of the Republic and that being insured by a French insurer is a question of sovereignty. That a community in the Republic is obliged to seek insurance in Japan, the UK or the US, I find that particularly damaging.”

The riots cost 65 million euros. What do we do with this 65 million euros? We take them and it brings us to our knees

Patrick Blanchard, general manager of Smacl Assurances

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Faced with the anger of mayors, Patrick Blanchard, general director of SMACL, the main insurer of communities over 10,000 inhabitants, says it regrets this situation but justifies these withdrawals by the increase in recent years in the number of disasters affecting the municipalities: “I will take the example of the riots. For SMACL, it cost 65 million euros. What do we do with this 65 million euros? We take them and it brings us to our knees. We are going to have more and more high-intensity disasters and we all need to sit around the table: local authorities, insurers and the State to find solutions.”

A mission on the insurability of local authorities has just been launched by the government. The conclusions are expected for next April.

AMONG OUR SOURCES

10/25/2023 – Launch of the mission on the insurability of local authorities

01/31/2024 – Insurance problems of local authorities: the senatorial information mission is formed and launches its consultation of local elected officials

Faced with the disengagement of insurers: “We, mayors of small towns in France, call on the government to act! » – Le Monde, 11/20/2023