In a few months, when policyholders receive their insurance bill for 2025, they risk looking grim. They will notice an increase of between 3% and 11%, depending on whether it is supplementary health insurance, comprehensive home insurance (MRH) or car insurance. The comparator for Reinsure Me estimates that the average expenses to be insured will amount to 3,055 euros next year, or 254 euros per month, compared to 2,822 euros in 2024.
It is mutual health insurance that is expected to increase the most with a price increase of 11%, while home and car insurance premiums are expected to increase by 5% and 4% respectively. Developments vary depending on the profile of the household: for a family with two children, it will be necessary to count +7.26% between 2023 and 2024, but the bill will increase by 9.27% for a retired couple.
The main reason is that claims were particularly high in 2023, and therefore insurance companies had to intervene much more frequently. Last year, a large part of the regions of France and overseas suffered from devastating climatic events: storms, floods, violent thunderstorms. Climate change is the cause, but not only that.
The urban riots in the summer of 2023 gave rise to several damages, especially to vehicles or street furniture, at a total cost of 793 million euros. Other forms of loss are also increasing, such as car thefts, which increased by 11.1% in 2023. Finally, there is a relatively stable, but high, number of burglaries (around 200,000 per year) according to France Assureurs, which aggregates insurance companies.
The world of insurance is also dependent on the economic environment: to compensate people who have suffered a disaster, for example a fire or water damage, it is necessary to replace the damaged elements with new ones. But with inflation, building materials and car parts cost more. The amount of compensation for water damage, for example, has increased by 41% over the past ten years.
In relation to supplementary health insurance, price increases can be explained by the aging of the population. Added to this are the measures that public authorities have recently taken, such as price increases for general practitioners or negotiations with laboratories and pharmacies. In total, this represents 1.2 billion euros in additional costs for supplementary health insurance. Finally, cyberattacks, which hit one in two businesses in 2023, also weighed on insurers’ financial performance.
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