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French insurance sector trends and cost increases

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2026-09-21 10:03 UTC → 2026-09-22 06:16 UTC · added ~~removed~~

The French insurance sector is experiencing increased tension and rising costs. In 2025, the Insurance Mediator (LMA) reported a 28% increase in referrals, totaling 46,830 cases. This surge was driven by declining purchasing power and the use of artificial intelligence by claimants to draft legal requests. Complementary health insurance referrals specifically saw a 97% increase in one year, with the admissibility rate of files rising from 33% to 47%. Looking ahead to 2027, premiums for home and automobile coverage are projected to rise, potentially outpacing inflation. ~~Multi-risk~~ 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%. Insurers cite more frequent and severe claims from storms, fires, and hail, as well as the rising cost of repair ~~materials,~~ materials and labor, as primary drivers. 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 such as cameras, radar, and specialized battery components. Additionally, the increased weight of electric vehicles can lead to more significant damage during collisions. Data indicates that between 2021 and 2025, auto insurance premiums rose by 17.6%, while the average cost of collision repairs increased by nearly 30%. The industry is also expected to see an acceleration in dynamic pricing methods similar to yield management.

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