Insurance costs for homes and cars in France are expected to rise in 2027, with estimates suggesting an increase of up to 7 percent. Two recent studies show that the rise in insurance premiums will outpace the 2.4 percent inflation recorded in August 2026. According to Facts & Figures, a specialist in the insurance sector, multi-risk home insurance (MRH) premiums are projected to rise by 5 to 6 percent next year. Another firm, Addactis, predicts an increase of around 7 percent, with an estimated additional cost of between 20 and 25 euros per year, excluding taxes, for each policy. Automobile insurance premiums are expected to rise by 3 to 4 percent, according to Facts & Figures, and up to 4.5 percent, according to Addactis. These increases are comparable in absolute terms, about 20 euros per year, because car insurance is generally more expensive than home insurance. The insurance industry says these price hikes are due to more frequent and costly incidents, including climate-related disasters such as storms, fires, and hailstorms, which are becoming more common. The rising cost of materials and labor needed for repairs is also a factor. Florence Lustman, president of France Assureurs, explained that the increase in insurance costs is mainly due to the growing and changing risks people face. She noted that incidents are happening more often, are more severe, and are more expensive to fix, especially because the cost of materials, repairs, and services has gone up. The price increase also helps insurance companies restore their profit margins. Axa, the largest French insurance company, reported a record net profit last year and now aims to reach a symbolic 10 billion euros in revenue. The rise in insurance premiums is also connected to climate change, which is largely driven by human activity and has led to more frequent and severe natural disasters. These events cause more damage to homes and vehicles. In addition, the growing popularity of hybrid and electric cars is contributing to higher automobile insurance costs. These vehicles are generally more expensive than traditional gasoline-powered cars, more complex, and harder to repair, which increases the cost of insurance for owners. As a result, both environmental and technological factors are influencing the upward trend in insurance prices across France.