Home insurance, a significant increase in ten years

At a time when bills are increasing on all sides, home insurance is distinguished by near-stability in prices between 2020 and 2022. In question, the successive confinements which have limited claims and allowed insurers to make 300 million savings. However, it is enough to take a step back to see that the situation is far from idyllic.

The waltz of prices

The online comparator Assurland.com periodically publishes its personal insurance price index (IPAP), based on the millions of quotes made on its portal. Thanks to this monitoring, the platform has carried out a retrospective analysis of the market over the past ten years and established a price map by region. However, it turns out that the prices of home insurance jumped by 33% between 2010 and 2021. While it was necessary to pay 162 euros per year under this contract in 2010, the average annual bill amounted to 216 euros in 2021, despite significant differences depending on the region.

In detail, Brittany and Pays de la Loire appear to be the most affordable territories, with a price increase below 20% and prices that remain the lowest in France: 144 and 150 euros in annual contributions in 2010 , against 171 and 179 euros in 2021. Conversely, prices exploded in Île-de-France (+ 32.2%), PACA (+ 33.3%) and Occitanie (+ 40.6%), knowing that these regions were already the most expensive with an average price going from 183, 180 and 165 euros ten years ago to 242, 240 and 232 euros today.

Inevitable catch-up

How to explain this phenomenon ? The sector had to make a necessary catch-up of contributions, as explained by Olivier Moustacakis, co-founder of Assurland.com. “The branch was in deficit in 2010. In other words, claims compensation was more expensive for home insurers than the premiums they collected. »

In the space of two years, prices have therefore risen by more than 11%. The absence of natural disasters in 2012, combined with this high increase, then made it possible to restore the economic balance of the sector by containing tariff growth at 2 or 3% per year over the following years. In an ultra-competitive sector, the sudden explosion of the bill is indeed the first reason for contract termination. Therefore, insurance companies try as much as possible to smooth the increases over time.

Claims at stake

But for Olivier Moustacakis, this outbreak was unavoidable given the situation. And the specialist recalls: “The main factor which leads to a change in the pricing of insurance is the loss ratio. In the field of housing, we therefore think of daily disorders such as fires and water damage or even burglaries and vandalism, but also and above all bad weather which is very expensive. However, France has experienced several dramatic episodes over the past decade, such as storm Xynthia in 2010, hailstorms in 2014 and 2016, repeated flooding, particularly in the South, or the storm Irma, which alone cost insurers nearly 2 billion euros.

Result: the natural disasters branch has been in deficit for several years and the tax levied on insurance contracts to supply the prevention and compensation fund (Cat Nat) has continued to increase. Faced with climate change, new price spikes are therefore inevitable in the near future.

What strategy to adopt?

In insurance, loyalty does not pay. On the contrary, it is essentially in the long term that the amount of your multi-risk home contract ends up flaming. To avoid successive increases, it is therefore wise to compare the prices of your insurance cover with those of the market every 18 months or so. Because even in a context of general price increases, there will always be offers that are more advantageous than others depending on your risk profile.

To succeed, it is therefore necessary to find at the instant T the insurance company which has decided to invest more in your segment, taking care that the initial rate can be attractive to attract customers. , then increase in subsequent years. Thanks to the Hamon law, you can fortunately terminate your contract at any time after the end of the first year of engagement.

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