Fire insurance premiums will increase by 10.8% in 2023: “This is one of the highest growths ever observed”

The amount of fire insurance premiums is linked to the Abex index. This, calculated twice a year in May and November according to the evolution of construction prices, stood at 1,004 at the end of November 2022, against 906 in November 2021, i.e. an annual increase of 10 .8%, against 5.6% last year.

“This is one of the highest growths ever observed for this index”, recognizes the president of the Abex, Alain Coppe, who explains that it is essentially the prices of steel, wood and insulators. which pushed the index up.

“Insurers are required to update the indemnity value of their fire insurance to the construction costs at the time of the loss. However, they are free to pass on or not the increase in the value of the indemnity to the amount of the premium and to add one or the other economic element to it”, adds Mr. Coppe.

According to him, 98% of insurers follow the index to change the amount of their premium.