French Insurers Face Up to €1.2bn Riot Losses as Paris Pushes €4bn State-Backed Cover
Updated
Updated · Financial Times · Oct 20
French Insurers Face Up to €1.2bn Riot Losses as Paris Pushes €4bn State-Backed Cover
2 articles · Updated · Financial Times · Oct 20
Summary
Up to €1.2bn in insured losses from last weekend’s unrest would make it one of France’s biggest protest-driven loss events, with damage already surpassing the more than €700mn hit from riots in 2023.
At least 3,000 businesses were damaged after initially peaceful protests spiralled into looting and attacks on buildings, hitting luxury retailers including Louis Vuitton and Kenzo.
Morningstar DBRS said the violence was unusually intense and widespread, while inflation has raised repair costs; analysts warned losses could climb further if unrest resumes.
France is seeking EU approval for a mandatory riot-insurance regime funded by a levy on insurers and backed by a state guarantee of up to €4bn, but it is not yet active and would not cover this weekend’s damage.
The push follows years of insurers trimming strikes, riots and civil commotion cover, a gap that has fueled business frustration and prompted calls for the state to shoulder more responsibility for internal security.