Study: In 8 out of 10 municipalities, spending on multi-risk insurance is rising sharply

Paris – 01.07.2026: A new assessment by the NGO Reclaim Finance and data partners shows that in France, spending on multi-risk insurance rose in around 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. Policies covering municipal property, such as town halls, schools, streets or sports facilities, have been particularly affected.

According to the study, around a quarter of municipalities are considered financially fragile because insurance contributions and damage costs consume an exceptionally large share of their budgets. Municipalities with recurring floods, heavy rainfall, drought-related cracks in buildings and hail damage are particularly exposed. Several municipal associations report significant local premium increases that place further pressure on already tight budgets.

The sector and public authorities are seeking countermeasures. According to sources close to France Assureurs, prevention programs, improved risk assessments and burden-sharing instruments are being discussed with ministries. Adjustments to the legal framework are also being considered in order to ensure the insurability of public assets and curb sharp premium fluctuations. Municipal leaders are calling for clearer frameworks for prevention and targeted support for particularly hard-hit locations.

Experts point out that insurance alone will not break the rise in costs. Investments in preventive infrastructure such as retention basins, drainage, heat protection and adapted construction methods are decisive. According to risk analysts, such measures reduce the frequency of claims in the medium to long term and thereby also stabilize premiums. Municipalities already investing in hazard 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 in order to combine mandatory tasks and maintenance with higher policy prices. Added to this are uncertainties surrounding deductibles and exclusions, which may take effect after a series of extreme events. Reclaim Finance therefore advocates coordinated state relief instruments and uniform transparency standards so that municipalities can identify and counter risks, coverage gaps and cost developments earlier. At the same time, associations see the insurance sector as having a duty to expand incentives for effective prevention.

The study thus provides a current assessment of a trend that is already being felt in household budgets in many places. According to observers, whether the planned measures are sufficient depends on how quickly prevention, financial assistance and regulatory adjustments work together—and how the frequency of extreme weather conditions develops in the coming years.