Over the years, we reveal the increases in insurance rates, thanks to data from our Personal Insurance Price Index (IPAP), which compiles more than 6 million rates obtained on our site.
Have insurance rates increased since 2010?
Of course, this has not escaped your notice: the price of personal insurance (auto, home, health) increases regularly each year. But is it possible to quantify the accumulation of these increases over the past ten years? This is the calculation made precisely by Assurland on the occasion of its latest study.
The observation is clear for the three products:
• In car insurance: +16% increase since 2010
• In home insurance: +33% increase since 2010
• In health insurance: +39% increase since 2010
To check if you have suffered this increase, you can request free home insurance quotes, and compare the premiums with yours.
Home insurance: after a 33% increase over ten years, a further increase due to cat nat?
The increase in insurance rates was further stronger in housing than in car for 10 years. In the case of housing coverage, the increase is also well above inflation: +33%versus +13.2% for average consumer prices.
In detail, we see a strong increase between 2010 and 2012 : climatic disasters and the cost of home claims then weigh very heavily on the balance of insurers, to such an extent that they are loss-making in this branch.
In this case, it would seem that the 2008 crisis contributed to this cost drift. Due to the economic difficulties of many individuals, claims related to a lack of maintenance (water damage, fire, etc.) have multiplied, as well as thefts.
The year 2012 marked a lull in the rise in prices, thanks to a no major natural disasters. The calm before the storm ? Unfortunately yes, since then the frequency and intensity of “cat nat” have never weighed so much on home insurance contracts.
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An increase in claims related to natural disasters is expected by 2050
In 2017, for example, Hurricane Irma which hit the West Indies represented a total cost of€1.9 billion. That same year, the increase in taxes also weighed on the rise in contracts: the so-called contribution “terrorism tax”which is donated to the Guarantee Fund for victims of acts of terrorism and other offenses (FGTI), increased to 5.90 euros on each home insurance contract.
Since then, home insurance has been affected by two contradictory pricing dynamics. On the one hand, personal insurers have made significant savings since the start of the health crisis. In cars and homes, they amounted to 2 billion euros at the end of the first national confinement.
How to explain it? Insurers simply had less compensation to be paid since the start of the pandemic. With the incentives to stay at home, and the development of telework for certain professions, the number of claims has decreased among individuals (in particular thefts and the start of fires).
On the other hand, the prospects drawn by climate change raise concerns about the future cost of natural disasters. Various insurance players (the ACPR, France Assureurs, and the Covéa group) have all recently agreed to a increase in claims by 2050especially for droughts and floods.
However, it should be remembered that the system of natural disasters (“cat nat”) is based on a principle of solidarity: all home policyholders pay a 12% tax to compensate the victims of events recognized as natural disasters by decree.
What rates for home insurance contracts in 2022?
At present, the cat nat scheme has been in deficit since 2015 : the amount of compensation exceeds that of the taxes collected. To maintain the plan, the ACPR thus provided that it would be necessary to increase the insurance premiums 130 to 200% over the next 30 years. That is an annual increase of 2.8% to 3.7% on home insurance contracts. We can even add that this estimate had been made before the recent reform of the cat nat scheme, which should make it possible to better compensate the victims. Good news of course, but which also has a great chance of affect contract prices.
The prices of home insurance contracts are therefore currently caught between a drop in claims over the past two years and a very sharp increase in claims in the medium and long term. It should be remembered, however, that the strong increases over the past ten years (+33%) have restored the sector’s profitability for the time being.
As in cars, it could be that the Hamon law of 2015 also makes it possible to maintain stable prices, at least this year. With the possibility given to policyholders to cancel when they wish after one year without charge or justification, insurers are indeed forced to maintain attractive prices to retain their customers or attract those who wish to change.
To change home insurance after a year, the easiest way is to go through an online home insurance comparator. If you find a new cheaper home insurer, the latter can take care of the termination process for you.
Home Insurance Rate Increase FAQs
Why do home insurance contracts increase every year?
Several reasons contribute to theannual increase in contracts home insurance: the commercial policy of the insurer, the increase in taxes on contracts, the increase in claims, etc.
How much does home insurance cost?
In 2021, the average price for home insurance was 216 euros per year (all forms combined).
How do I change home insurance?
To change home insurance, you can wait until the anniversary date of your contract, and respect the legal notice. After the first year of subscription, you can cancel whenever you want, without cost or justification.
Can I change my home insurance at any time?
Yes and no. Thanks to the Hamon law, it is possible to terminate at any time, but only once the first year of subscription has passed.
What is the cheapest home insurance?
According to the Opinion-assurances.fr website, here are the three best-rated insurers in terms of the rates charged:
top Insurers Weighted average score Satisfaction Price level
1 Sogessur 3.1 3 3.2
2 Matmut 2.1 1.7 2.5
3 MACIF 1.9 1.4 2.5
Thanks to Assurland.com, compare your personal insurance for free in a few minutes to be protected at the best price!
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