The unrest has caused extensive damage to commercial premises, public buildings and vehicles. The estimated insurance bill could exceed that of the 2023 riots, which generated EUR 793 million in insured losses, according to the latest figures published by France Assureurs.
Based on the 2023 experience, commercial property claims are likely to account for the largest share of insured losses, followed by damage to municipal property. Business interruption claims could also contribute significantly to the final bill.
Primary insurers will initially handle the claims, although part of the losses may ultimately be transferred to reinsurers or recovered from the French State. Under Article L.211-10 of the French Internal Security Code, the State may be held liable for certain damages resulting from violent collective disturbances. However, recoveries depend on the circumstances and applicable legal conditions.
The latest events also highlight the importance of insurance protection gaps. Depending on policy terms, losses arising from looting, vandalism or business interruption may be excluded or subject to limitations.
Meanwhile, France is developing a new mandatory riot insurance framework, supported by a state-backed reinsurance mechanism through Caisse Centrale de Réassurance (CCR). The proposed system includes a government guarantee of up to EUR 4 billion, but its implementation remains subject to regulatory requirements, including EU state-aid approval.
According to Morningstar DBRS, the increasing frequency and severity of civil unrest are making riot-related risks an increasingly important consideration for insurers, reinsurers and policymakers.
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