Analysts assess the consequences of street riots in France for insurers

The losses of insurance companies due to mass protests and riots in France could reach 1.2 billion euros. This forecast leads the Financial Times with reference to the assessment of the analytical agency Morningstar DBRS.

According to analysts, insurance payments in connection with the recent riots in France have already exceeded 700 million euros. This amount is comparable to the damage insurers have compensated after the 2023 protests lasted more than a week.

Morningstar DBRS analyst Marcos Alvarez explained the scale of possible losses by the intensity and scope of recent street clashes, as well as the rising cost of damage against the background of inflation. According to him, such events become a kind of analogue of natural disasters for the insurance market, and payments for each such event can reach hundreds of millions of euros annually.

The final amount of compensation will depend on the further development of the situation. If the unrest continues, the financial losses of insurance companies could increase.

Protests in France began in mid-September. Initially, high school students spoke in the suburbs of Paris, demanding to improve the condition of schools. Later, citizens dissatisfied with rising prices joined the protests, and the protest movement spread to other regions of the country.

The largest nationwide demonstration took place on October 17. According to the interior Ministry of France, it was attended by about 550 thousand people. To disperse the participants, law enforcement officers used tear gas, noise grenades and water cannons.

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