Study: In 8 out of 10 municipalities, spending on multi-risk insurance rises considerably

Paris – 01.07.2026: A new mapping by the NGO Reclaim Finance and data partners shows that in France, spending on multi-risk insurance increased in approximately eight out of ten municipalities between 2020 and 2024. The authors attribute this to more frequent and intense extreme weather events, as well as higher premiums and deductibles. This mainly affects policies covering municipal assets such as town halls, schools, streets, or sports facilities.

According to the study, around one quarter of municipalities are considered financially fragile because insurance contributions and claims costs consume an exceptionally high proportion of the budget. Municipalities with recurring floods, consequences of heavy rainfall, drought-related cracks in buildings, and hail damage are particularly exposed. Several municipal associations report significant local increases that further narrow budget margins.

The sector and state authorities are seeking countermeasures. According to sources linked to France Assureurs, prevention programs, improved risk mapping, and instruments for sharing burdens are being discussed with ministries. Adjustments to the legal framework are also being considered to ensure the insurability of public assets and soften sharp jumps in contributions. Municipal leaders are calling for clearer prevention guidelines and targeted support for particularly affected locations.

Experts point out that coverage alone does not break the cost curve. What is decisive is investment in preventive infrastructure such as retention basins, drainage, heat protection measures, and adapted construction techniques. According to risk analysts, such measures reduce the frequency of claims in the medium and long term and also stabilize premiums. Municipalities already investing in risk maps, more resilient building materials, and network maintenance report measurable effects on claim amounts and downtime.

In the short term, however, the situation remains tense. Many town halls must reorder priorities to reconcile mandatory tasks and maintenance with higher premiums. There are also uncertainties concerning deductibles and exclusions that may come into force after series of extreme events. Reclaim Finance therefore advocates coordinated state relief instruments and uniform transparency standards so that municipalities can identify risks, coverage gaps, and cost trends earlier and respond. At the same time, associations see the insurance industry as having an obligation to expand incentives for effective prevention.

The study thus provides a current overview of a trend that is already being felt in municipal accounts in many places. Whether the planned measures are sufficient depends, according to observers, 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.