Study: In 8 out of 10 municipalities, spending on comprehensive insurance is rising sharply

Paris – 01/07/2026: A new mapping by the NGO Reclaim Finance and its data partners shows that in France, between 2020 and 2024, spending on comprehensive insurance increased in around eight out of ten municipalities. The authors attribute this to more frequent and more intense extreme weather events, as well as rising premiums and deductibles. Policies covering municipal assets such as town halls, schools, roads, and sports facilities are particularly affected.

According to the study, around one quarter of municipalities are considered financially fragile because insurance contributions and claim costs account for an exceptionally high share of the budget. Municipalities facing recurring floods, the consequences of heavy rainfall, drought-related cracks in buildings, and hail damage are particularly exposed. Several municipal associations report significant local surcharges that further squeeze already tight budget margins.

The sector and public authorities are seeking countermeasures. According to information obtained from France Assureurs, ministries are discussing prevention programs, improved risk mapping, and burden-sharing instruments. Adjustments to the legal framework are also under consideration to ensure the insurability of public assets and smooth out sharp premium increases. Local elected officials are calling for clearer safeguards for prevention and targeted support for particularly affected municipalities.

Specialists emphasize that insurance alone will not halt the cost trajectory. Investments in preventive infrastructure—retention basins, drainage, heat protection, and adapted construction methods—are decisive. According to risk analysts, such measures reduce the frequency of damage in the medium and long term and thus stabilize premiums. Municipalities that already invest in hazard maps, more resilient building materials, and network maintenance are seeing measurable effects on damage amounts and downtime.

In the short term, however, the situation remains tense. Many town halls must reorganize their priorities to reconcile mandatory tasks and maintenance with rising policy costs. There are also uncertainties regarding deductibles and exclusions that may apply after a series of extreme events. Reclaim Finance therefore advocates coordinated state relief instruments and harmonized transparency standards so that municipalities can identify risks, coverage gaps, and cost developments earlier and act accordingly. At the same time, associations believe that the insurance sector has an obligation to strengthen incentives for effective prevention.

The study thus provides a current overview of a trend already noticeable in many local budgets. According to observers, the effectiveness of the proposed measures will depend on how quickly prevention, financial aid, and regulatory adjustments work together—and on how the frequency of extreme weather events develops in the coming years.