With bills increasing in every way, home insurance is distinguished by near-stability of prices from 2020 to 2022. The problem is the continuous limits that limit claims and allow insurers to save $ 300 million. However, it is enough to take a step back to make sure the situation is far from idyllic.
The online comparator Assurland.com regularly publishes the Personal Insurance Price Index (IPAP) based on millions of estimates made on the portal. Thanks to this monitoring, the platform has performed a retrospective analysis of the market over the last decade and established a regional price map. However, home insurance prices were found to have risen 33% between 2010 and 2021. The 2010 contract required € 162 per year, but the average annual bill for 2021 was € 216 despite the significant difference. It depends on the region.
In detail, Brittany and Pays de la Loire appear to be the most affordable regions. Prices are below 20% and prices remain the lowest in France. Annual contributions in 2010 were € 144 and € 150, while in 2021 they were € 171 and € 179. Conversely, prices surged in France’s Il (+ 32.2%), PACA (+ 33.3%) and Occitanie (+ 40.6%). These regions are already the most expensive, with average prices of 183, 180, 165 euros 10 years ago, but now 242, 240, 232 euros.
How would you explain this phenomenon? As explained by Olivier Mustacakis, co-founder of Assurland.com, this sector had to catch up on the necessary contributions. “The branch was in the red in 2010. In other words, the insurance claim compensation was higher than the premium collected by the home insurance company. »»
Therefore, in two years, prices have risen by more than 11%. Combined with the absence of natural disasters in 2012 and this significant increase, it is possible to restore the economic balance of the sector by curbing annual tariff increases of 2-3% over the next few years. became. In a highly competitive field, the sudden explosion of bills is certainly the first reason for contract termination. Therefore, insurers will strive as much as possible to smooth the increase over time.
Claims at stake
However, for Olivier Mustakakis, this outbreak was unavoidable given the circumstances. And experts recall: “The main factor leading to changes in insurance pricing is the loss rate. Therefore, in the housing sector, not only daily obstacles such as fires and floods, but also robbery and vandalism, but especially very expensive storm weather. But France has also been thinking about the 2010 Xynthia storm, the 2014 and 2016 hailstorms, especially the repeated floods in the South, or nearly € 2 billion to insurers alone in the last decade. I experienced some dramatic episodes, such as the costly Irma storm.
Result: The natural disaster sector has been in the red for several years, and taxes on insurance contracts to supply the Prevention and Compensation Fund (Cat Nat) continue to increase. Therefore, in the face of climate change, new price spikes are inevitable in the near future.
What strategy would you adopt?
Insurance does not pay loyalty. On the contrary, the amount of your multi-risk housing contract burns up in nature in the long run. Therefore, it is advisable to compare the insurance price with the market price every 18 months to avoid a continuous rise. This is because even in the general price increase situation, there are always offers that are better than other offers depending on the risk profile.
Therefore, to be successful, you need to instantly find an insurance company that has decided to invest more in your segment, noting that the initial rate is attractive to attract customers. Fortunately, thanks to the Hamon Act, you can terminate your contract at any time after the end of the first year of your engagement.