France: Majority concerned about growing Nat CAT risks
Source: Middle East Insurance Review | Oct 2021
Nine out of 10 people in France are worried about weather-related events and believe Nat CAT risks are getting worse in the country as a result of climate change.
A new survey released recently identified several big concerns that included secondary Nat CAT perils that have also kept risk managers, insurers and reinsurers awake at night.
The survey was conducted by public opinion research firm opinionway and was commissioned by risk consultancy Stellant.
Almost half of those surveyed said they are worried about floods and 39% were concerned about droughts, both of which have afflicted France with increasing frequency and severity.
Four of the five top risks flagged by the survey are Nat CATs. These also include wildfires, a concern for 38% of survey participants and windstorms named by 33%. The only non-climate-related threat in the top five list was, unsurprisingly, risk of disease and pandemics at 42%.
Stellant head of property risk Didier Richert said at least risk perception does not differ much from the reality of catastrophic losses in France.
Data from France’s state-owned reinsurer CCR shows that 57% of all insured losses from Nat CATs in the country come from floods and 34%, from droughts. It is estimated that Nat CAT events cause annual damages between $11.73bn and $15.25bn a year, of which around $1.58bn are absorbed by the insurance and reinsurance markets.
The survey also revealed that public opinion in France seems to be on the side of those who believe climate change is making the situation worse.
A total of 77% of those surveyed said that Nat CAT risks are on the rise in the country. One out of every three thinks this will hit their own regions more than five years from now, and 42% feel that this could happen in just two to five years. A significant minority (14%) believe their region will be affected by more intense Nat CAT events in less than a year. M