France insurers face 500 million euro cost from forest fires

French insurers are facing unprecedented costs due to massive forest fires in the south of France this summer. According to preliminary estimates from France Assureurs, claims from fires in Gironde, Landes, and Var have reached approximately 500 million euros. This figure is six times higher than the 80 million euros recorded during the summer of 2022.

The scale of the damage has increased significantly, with nearly 25,000 claims reported compared to roughly 2,000 in 2022. This surge is attributed to the destruction of nearly 100,000 hectares of forest since the spring, driven by a drought affecting 65 departments. The total cost may rise as the deadline for reporting damages extends through August 31.

Covered damages include homes, professional property, and vehicles. A portion of these costs is managed through the natural disaster scheme, funded by a 12% surcharge on all French home and auto insurance contracts. Insurers and reinsurers continue to warn of the structural rise in costs associated with extreme climate events.