According to the consulting firm Facts & Figures, home insurance premiums are expected to increase by 12% in 2025. For auto insurance, the increase would be between 4 and 6%.
© Illustration Capital – generated using AI
Rarely have such increases been observed. According to a study by the consulting firm Facts & Figures published on September 23, home insurance premiums are expected to jump by 10 to 12% in 2025. And this average could mask increases that are even harder to bear. Some insurers, with the results “seriously degraded”, could indeed push the cork to 15% increase “on houses and pavilions”. “The major element is the increase in the Natural Disaster contribution,” explains Cyrille Chartier Kastler, founder of the firm. As of January 1, 2025, all home insurance policies will see the rate of this contribution, financing the natural disaster regime, increase from 12% to 20% on certain damage guarantees in the contract.
The increase in extreme weather events has already caused €10.3 billion in damage in 2022 and €6.5 billion in 2023, according to the industry federation, France Assureurs. This is much more than the average of €3.5 billion observed between 2017 and 2021. And the trend is expected to intensify: “The various studies carried out on the subject of natural disasters, whether by insurers or by public authorities, reach the same conclusions, namely a certain and recurring increase between now and 2050 in episodes of hail, flooding, landslides, storms and drought”notes Facts & Figure. Drought alone now represents an annual cost of between €750 million and €1 billion for insurers, as 10 million homes and pavilions are affected by the phenomenon.
“Home insurance is likely to become considerably more expensive,” warns the boss of Maif
On the auto side, inflation will certainly be lower – between 4 and 6% – but still painful to bear. The drift in prices of auto parts – 5.9% in the first half of 2024 alone, much higher than the general inflation recorded by INSEE -, the increase in the number of claims since 2024 or the increase in the cost of labor for garages – 6.6% in 2023 – are pushing contributions up.
Receive our latest news
Every week, the key articles to accompany your personal finance.