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Insurance prices soar in new year
Big rises planned for home and car insurance after large payouts from storms and floods this year
THE COST of home and car insurance in France is to rise by up to eight per cent in January, as insurers pass on the cost of dealing with several major storms and floods in the past year.
Les Echos says most of the big groups are planning to raise premiums by between 3.5 and eight per cent for home insurance and between 2.5 and 4.5 per cent for car cover.
The aftermath of Storm Xynthia, which hit large parts of France in February, and the deadly floods in the Var in June, have seen insurers faced with big claims.
The biggest increases will be in multirisque packages, which typically combine property and contents insurance, legal help and civil responsibility cover.
Aviva's director of insurance products, Claude Zaouati, said the price rise was "necessary". He added: "Maybe we all went a bit too far with price cuts in recent years."
Axa France director-general Jacques de Peretti told Les Echos: "If we have another bad year in 2011, these price rises will not be enough."