French event
The intensification and increased frequency of climatic hazards are putting growing pressure on insurance and reinsurance mechanisms. In 2023, weather-related claims cost €6.5 billion in France, making it the third most expensive year for the sector. According to projections by the Caisse Centrale de Réassurance, the cost of weather-related losses could rise by 23% between now and 2050, and even by 47% to 85% if changes in insured values are taken into account. In addition to increasing the probability of risk occurrence, the growing concentration of wealth is exacerbating the scale of potential losses, calling into question the very viability of certain insurance and reinsurance mechanisms. Faced with increasingly systemic and correlated climatic hazards, certain key insurance principles, such as mutualisation and diversification, are being put to the test, raising questions about the operating conditions of a financing tool that has historically been based on the dispersion of claims.
