New commentary from AM Best has suggested the reinsurance impact of the recent civil unrest in France will likely be small because higher retentions on property catastrophe excess-of-loss treaties and stricter terms and conditions may make it harder for direct insurers to aggregate losses to reach the reinsurance threshold.
Media accounts indicate that the current wave of civil unrest in France initially began with student-led protests over deteriorating school conditions, teacher shortages and underfunded education budgets.
The demonstrations soon broadened into wider public protests over the cost-of-living crisis, stagnant wages, high youth unemployment and cuts to public services.
Major cities including Paris, Marseille, and Lyon have since been heavily disrupted by severe riots, arson, and the opportunistic looting of thousands of shops.
More than 2,000 shops and businesses have been directly impacted by looting and vandalism, including over 600 premises in Marseille alone.
France’s Chambers of Commerce and Industry (CCI) estimated the total property damage to be in the hundreds of millions of euros.
According to AM Best, historically, insurers have included Strikes, Riots, and Civil Commotion (SRCC) coverage as a standard part of a commercial policy.
However, as political unrest, riots, and civil unrest have become increasingly frequent and expensive, insurers have been treating these risks as unique and giving them separate consideration in underwriting.
AM Best said it expects the frequency and velocity of these events to increase in the future, adding that the democratisation of social media and messaging platforms allows for rapid mobilisation.
“These digital tools have enabled groups to increasingly organise mass demonstrations with precision and rapidity, resulting in highly correlated, simultaneous property losses across urban centres (similar to catastrophes),” the agency explained.
In response to this escalating volatility, insurers and reinsurers have reportedly adjusted their risk appetites through exclusions & sub-limits and addressing these risks separately.
AM Best continued, “Following the severe social unrest witnessed across France in mid-October, the French authorities have reacted to the next planned protests by mobilising the policing force, deploying specialist units, and extending curfews or banning protests in some cities.
“In February 2026, the French government passed new legislation to make riot insurance a mandatory guarantee within property insurance coverages. As part of the same law, the French government is planning to use its state-backed reinsurer, Caisse Centrale de Reassurance, to provide a guarantee to the mandatory riot scheme for up to €4 billion.
“The decree is awaiting publication, pending the EU’s approval. The decree was expected to be implemented in January 2027; however, a final agreement is yet to be reached and the timelines may slip, putting additional pressure on direct insurers.”
The agency noted that the new arrangements will not cover recent losses and that most claims are expected to arise from property risk coverage, with limited impact on political violence and terrorism policies given the line’s limited exposure to SRCC in France.
AM Best concluded, “The reinsurance impact is likely to be small due to higher retentions on property catastrophe excess-of-loss treaties and stricter terms and conditions that may make it more difficult for direct insurers to aggregate losses to reach the reinsurance threshold.”
