Insurers in France are facing potential losses of up to €1.2 billion following a wave of violent unrest that erupted over the weekend, with analysts warning the event could become one of the country’s largest protest-related insurance loss episodes. The recent demonstrations, initially peaceful, escalated into widespread looting and attacks on properties, intensifying damage and driving up claims costs amid inflation.
According to Morningstar DBRS analysts, the scale and intensity of the latest unrest have resulted in insured losses surpassing those incurred during the riots in 2023, which amounted to over €700 million. The July 2023 riots alone, triggered by the police killing of a teenager amid ongoing opposition to President Emmanuel Macron’s retirement age reforms, cost insurers €798 million, industry figures from France Assureurs showed.
The rising frequency and severity of riot-related losses have led to calls for new risk management frameworks. Insurers have increasingly limited their exposure to social unrest by introducing exclusions known as strikes, riots, and civil commotion (SRCC) from standard property insurance policies. This has prompted many businesses to purchase separate policies specifically covering such events. Some insurers have instead opted to impose caps on riot-related payouts.
Legal experts note that these exclusions have grown more common since the emergence of the gilets jaunes (yellow vests) protests in 2018. While specialized private riot coverage remains available, industry observers say there is a political impetus to expand access to riot insurance for those currently uncovered. This has prompted the French government to pass legislation mandating that riot insurance be included as part of all property insurance policies.
The government is seeking approval from the European Union to implement a state-backed riot insurance scheme, which would be financed through a levy on insurers. This cost is expected to be passed on to policyholders. The measure aims to address what businesses perceive as a significant gap in coverage for damages caused by civil unrest.
Axa CEO Thomas Buberl emphasized the need for the state to reinforce public security measures, stating that the government should not rely solely on insurers to manage losses resulting from riots. He stressed that ensuring internal security is a core government responsibility and expressed hope that such violent events would not recur in the coming weekends.
As the situation on the ground has calmed, analysts caution that further unrest could drive losses even higher. The developments underscore the challenges facing both the insurance industry and French authorities in managing the financial and social consequences of recurring large-scale protests.