Study: 8 out of 10 local authorities report sharp increases in multi-risk insurance costs

Paris – 01.07.2026: A new map by NGO Reclaim Finance and data partners shows that in France, between 2020 and 2024, around eight out of ten local authorities saw spending on multi-risk insurance increase. The authors attribute this to more frequent and intense extreme weather events, as well as rising insurance premiums and deductibles. The affected contracts mainly cover public assets such as town halls, schools, roads or sports facilities.

According to the study, around one quarter of local authorities are considered financially vulnerable because insurance contributions and damage costs account for an unusually large share of their budgets. Particularly exposed are local authorities that are frequently affected by flooding, heavy rainfall, drought-related cracks in buildings and hail damage. Many local government associations report significant local price increases, further tightening already constrained budget gaps.

The insurance industry and public authorities are seeking countermeasures. According to France Assureurs, they are discussing prevention programmes, improved risk mapping and instruments for sharing the burden together with ministries. Adjustments to the legal framework are also being considered to ensure the insurability of public assets and smooth out major premium increases. Local leaders are calling for clearer guidelines for prevention work and targeted support for the most heavily burdened areas.

Experts stress that insurance alone cannot bend the cost curve. Key factors are investments in preventive infrastructure such as retention basins, drainage systems, heat protection measures and adaptive construction methods. According to risk analysts, these measures reduce the frequency of damage in the medium and long term and thus stabilise insurance premiums. Local authorities that have invested in hazard mapping, more durable building materials and maintenance of networks report measurable effects on total damage and interruption times.

In the short term, the situation remains tense. Many town halls must reprioritise in order to combine mandatory tasks and maintenance with higher insurance contract costs. There are also uncertainties regarding deductibles and exclusions that may be applied after sequences of extreme events. Reclaim Finance therefore calls for state-coordinated relief mechanisms and uniform transparency standards so that local authorities can identify risks, insurance gaps and cost developments early and take timely action. At the same time, associations believe that the insurance industry has a responsibility to expand incentives for effective prevention.

The study therefore provides an updated overview of a trend that many places have already felt in their budgets. Whether the planned measures will be sufficient depends, in the observers’ view, on how quickly prevention, financial support and regulatory adjustments are coordinated—and on how the frequency of extreme weather events develops in the coming years.