New insurance rule for riots in 2027

A new rule in the 2026 finance law, approved in February 2025, will require insurance companies to include coverage for riots in their car and home insurance policies starting January 1, 2027. This will be supported by a government-backed "mutualization fund" and the Central Reinsurance Fund to spread the financial risk.

Inspired by natural disaster coverage

The rule was modeled after the existing compensation system for natural disasters, known as CatNat, and was partly a reaction to rising urban violence. Events in several French cities over the weekend of October 17, 2024, highlighted the need for such coverage, as did the ongoing effects of the Yellow Vests protests that began in 2018.

Insurance contribution capped at 1.5%

Senator Jean-François Husson (LR) introduced the amendment on behalf of the Senate Finance Committee. Insurance companies will pay a solidarity contribution to the mutualization fund, capped at 1.5% of their premiums. Some estimates suggest the actual rate might be around 0.8%, generating about 400 million euros annually.

Approval needed from European authorities

The implementation of the rule requires approval from the European Commission, as it involves state aid. The government plans to publish the necessary decrees in December 2026, after validation by the Council of State. These decrees will define the specific conditions for coverage.

Opposition in the National Assembly

While the Senate passed the measure unanimously, the National Assembly showed strong opposition. Several political groups formed a united front against the mechanism, calling it sensitive. The amendment was removed during a committee reading but later reinstated using the 49.3 procedure, which allows the government to bypass a vote.

Government guarantee and additional taxes

The government guarantees up to 3.25 billion euros for the mutualization fund, with the possibility of several hundred million euros being used in case of major disasters. In 2027, additional taxes will be introduced, including a 200 million euro surcharge on car insurance to support fire and rescue services, and a two-euro increase in the "attack" tax to fund victims of terrorist acts.