What rises are expected to house and car insurance in France in 2024?

Insurance premiums for house and car policies are set to increase in France next year, as insurance companies’ two-year agreement to keep tariffs under inflation levels comes to an end.

In September 2022, companies had agreed with the economy ministry to limit any price rises under inflation levels for two years, but in September 2024, this is set to end.

Price comparison sites are predicting rises, and some insurance companies appear to have confirmed this. The website assurland.com updated its rate increase estimates for 2024 on Monday (December 11), estimating:

• A 5-6% rise for home insurance

• A 3.5% rise for vehicle insurance

Premiums for electric car policies could also rise significantly, insurers have suggested, especially as these policies are currently “underpriced”, said Cyrille Chartier-Kastler, founder of strategy and management consultancy Facts & Figures, to AFP.

These rates are higher than inflation, which was estimated at 3.4% year-on-year in November by national statistics bureau INSEE.

Read more:Water leaks, blocked pipes: what does home insurance cover in France?

“Insurance companies, like everyone in France, are suffering the effects of climate change and inflation,” said Franck Le Vallois, director general of the industry federation France Assureurs, to AFP.

However insurance companies appear to be making significant profits: Axa reported a net profit of €6.7 billion last year, and had reached €3.8 billion in the first half of 2023. Reported profits from the Covéa group - which owns the MAAF, MMA and GMF brands - was close to €1 billion last year.

Health rise, and response

Health insurance rates could also increase. Reported possible rises have prompted Health Minister Aurélien Rousseau to say that a rise of 8-12% was “untenable”. He is set to hold a meeting to address the increases on Friday (December 15).

In mid-November, the Autorité de contrôle prudentiel et de résolution (ACPR) called on insurers to "control their rates" and "reflect" on their management costs and profits.

Public insurers have also said that repeated increases from private insurance companies ‘undermine’ the public insurance scheme - mainly used for natural disaster (catastrophe naturelle) response.

Read more: Storms in France: Insurers advise action to limit damage to home
Read more: France’s ‘catastrophe naturelle’ insurance system: how to claim

The scheme is managed by the Caisse Centrale de Réassurance (CCR) and is 95% funded by a surcharge of 12% on home, personal and business insurance policies.

In mid-October, France Assureurs said that this surcharge should increase by as much as 50%. The CCR itself is calling for an increase of 19%, especially as climate change is likely to require the fund to be used more often, it said.

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