Insuring local authorities following the riots: my interview on France Culture

Publié le 08/09/2023

According to initial estimates, the damage caused by the riots will cost insurers around €650 million.

Following the riots, some local authorities had to cancel their insurance policies.

There is also an imbalance between supply and demand. Since 2019, insurance prices have been on the rise because insurers are reducing supply. The market has been like this for 4 years and only 4
new companies have been approved in 30 years.

Private insurers are deserting tenders, believing that insurance premiums are not sufficiently profitable in relation to the level of risk. Although, 80% of local authorities are insured by SMACL they cannot respond to all calls for tender and is in deficit. Moreover, during the riots in 2005, SMACL took legal action against the government, but was unsuccessful because of the strict conditions.

The regime that seems to be applicable is to prove gross negligence, for example that the state did not implement sufficient means to protect the population. For spontaneous and unpremeditated action, article L2011-10 CSI (for no-fault liability) may be appropriate. This may work for the first few days of the riots.

Listen to the interview in French