France insurance premiums projected to rise in 2027

Insurance premiums for home and automobile coverage in France are projected to rise significantly in 2027, outstripping current inflation rates. Industry analysts from Facts & Figures and Addactis estimate that multi-risk home insurance premiums could increase by 5% to 7%, while automobile insurance is expected to rise by 3% to 4.5%.

Several factors are driving these increases. Insurers cite a rise in the frequency and severity of claims due to climate-related events such as storms, fires, and hail. Additionally, the cost of repair materials and labor has climbed steadily.

In the automotive sector, the transition to electric and hybrid vehicles is a major contributor to higher costs. These vehicles are often more expensive to repair due to complex technologies like cameras and radar, as well as specialized components like batteries. Furthermore, electric vehicles tend to be heavier, which can lead to more significant damage during collisions. Between 2021 and 2025, auto insurance premiums rose by 17.6%, while the average cost of collision repairs jumped nearly 30%.