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Natural disasters: drought is expensive

2021-06-19T20:49:26.258Z


The heat episodes continue to progress leading to an increase in the claim bill. No respite from the natural disasters front. Last year, claims caused by extraordinary weather events cost between 1.4 and 1.7 billion euros, according to the annual report of the Caisse centrale de réassurance (CCR) published on Wednesday. An amount higher than the average of the last forty years (1.04 billion per year on average since 1982). "France was marked for the fifth consecutive year by a


No respite from the natural disasters front.

Last year, claims caused by extraordinary weather events cost between 1.4 and 1.7 billion euros, according to the annual report of the Caisse centrale de réassurance (CCR) published on Wednesday.

An amount higher than the average of the last forty years (1.04 billion per year on average since 1982).

"France was marked for the fifth consecutive year by a very high loss experience, with two events of exceptional intensity: the floods in the Alpes-Maritimes and a new episode of particularly intense drought during the summer",


notes the public reinsurer .

Read also:

The cost of natural disasters jumped in 2020

The phenomenon of drought, which causes cracks in houses, represented three quarters of the total claim bill in 2020 (between 1 and 1.2 billion euros).

“The costs associated with drought have increased significantly in recent years. They represent on average half of claims, against a


tenth in the past, ”

explains Bertrand Labilloy, CEO of the CCR. The increase in droughts and the damage caused to buildings worry the public authorities, because the costs could skid. A report on the subject is awaited.

Beyond that, the size of the claims of recent years,

"a probable sign of the first effects of climate change, puts pressure on the“ Cat Nat ”regime and demonstrates the need to ensure its sustainability"

, estimates the CCR. This public-private scheme was set up in 1982 to compensate for damage caused by natural disasters. It

“fulfills its function today, which consists of covering all policyholders and protecting public finances

,” explains Bertrand Labilloy.

But, if significant prevention efforts are not put in place, it will be necessary, in the decades to come, to increase the insurance premium covering the risk of natural disaster. "

Source: lefigaro

All business articles on 2021-06-19

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