EXTREME WEATHER EVENTS : AVOIDING THE INSURABILITY CRISIS IN FRANCE

The French Nat-Cat scheme, a public-private partnership, is facing instability as the public reinsurer (CCR) absorbs an increasing share of claims, with losses exceeding €3 billion between 2015 and 2024. While policyholders face higher premiums and local authorities struggle to secure coverage in high-risk areas, ten of the largest European insurers and reinsurers have reported record financial performance, with cumulative net income increasing by 60% between 2010 and 2024. Reclaim Finance argues that the current burden-sharing is unfair and urges public authorities to mobilize these profitable insurers to fund climate disaster prevention and damage compensation.

• Extreme weather events are causing significant economic losses in France, with damages from droughts, floods, and storms exceeding €74 billion between 1989 and 2019, and a projection that these losses could double from 2020 to 2050.
• A substantial portion of climate-related losses in France remains uninsured; between 2015 and 2024, 46% of total losses (approximately €16 billion) were not covered, shifting the cost to individuals, local authorities, and the state.
• The Caisse Centrale de Réassurance (CCR), the public reinsurer in France's Nat-Cat scheme, is under severe financial pressure, having seen its reserves halved after natural catastrophe reinsurance losses exceeded €3 billion between 2015 and 2024.
• Local authorities in highly exposed regions, such as Hauts-de-France and overseas territories, are experiencing the withdrawal of insurers and an inability to secure coverage.
• Analysis of ten major European insurers and reinsurers (including AXA, Allianz, Generali, Zurich Insurance, Hannover Re, Lloyd’s of London, Mapfre, Munich Re, SCOR, and Swiss Re) shows record profits despite rising climate losses, with cumulative net income increasing 60% between 2010 and 2024 to €405 billion.
• Major insurers are prioritizing shareholder returns over climate risk stability, with AXA, Allianz, and Zurich Insurance distributing up to 75% of net income via dividends and buybacks, and the broader sample paying €22 billion in dividends in 2024.
• France requires significant additional funding for climate resilience, including an estimated €1.8 billion per year for natural risk prevention investments.

APA

Reclaim Finance (n.d.). EXTREME WEATHER EVENTS : AVOIDING THE INSURABILITY CRISIS IN FRANCE. https://reclaimfinance.org/site/wp-content/uploads/2026/03/CATASTROPHES-NATURELLES-_EN_.pdf

Chicago

Reclaim Finance. EXTREME WEATHER EVENTS : AVOIDING THE INSURABILITY CRISIS IN FRANCE. n.d. https://reclaimfinance.org/site/wp-content/uploads/2026/03/CATASTROPHES-NATURELLES-_EN_.pdf.

Wikipedia

{{cite report |author=Reclaim Finance |title=EXTREME WEATHER EVENTS : AVOIDING THE INSURABILITY CRISIS IN FRANCE |url=https://reclaimfinance.org/site/wp-content/uploads/2026/03/CATASTROPHES-NATURELLES-_EN_.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{reclaimfinancendextreme, author = {{Reclaim Finance}}, title = {{EXTREME WEATHER EVENTS : AVOIDING THE INSURABILITY CRISIS IN FRANCE}}, institution = {Reclaim Finance}, url = {https://reclaimfinance.org/site/wp-content/uploads/2026/03/CATASTROPHES-NATURELLES-_EN_.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }