Responding to the rising flood challenge

Commercial Risk Europe discusses the impact of escalating flood risk in France with Anke Sielker and Mirka Vahtera from ICEYE, a provider of satellite-powered disaster management solutions.

How significant is the flood risk challenge facing the insurance industry in France?

Mirka: The insurance industry is experiencing one of the most pronounced periods of flood-related losses to date, with flooding events increasing in both severity and frequency across the region in recent years.

Meteo France ranked 2024 as one of the ten wettest years on record. Major storm losses included Henk in January, which flooded 1,300 properties causing insured losses of around €640m, while extensive flooding occurred in central and southern France in March and April. More recently, the floods in October are estimated by CCR to have generated insured losses of €350m to €450m.

Floods in France mapped by ICEYE between Nov 2023 and Jan 2025

Source – ICEYE

ICEYE has already been monitoring flood events in January, with our synthetic aperture radar data recording flooding from intense rainfall events across more than 3,500 square kilometres, impacting communities and infrastructure.

So it’s very much a prevalent and persistent challenge for the French insurance market, and one only set to increase given current climate projections.

How is this impacting the ability of the insurance market to respond effectively?

Anke: While the region benefits from CCR, the public-sector reinsurer, approximately 50% of overall insured losses are carried by the private market – which, given the increasing scale and frequency of loss, is a significant and growing burden.

The insurance sector is coming under greater scrutiny given the associated economic challenges. The subject of insurability in flood-exposed regions is increasingly debated, with the French government commissioning CCR to set up an ‘insurability observatory’ to help ensure cover can be maintained, particularly in highly exposed regions.

At a more practical level, insurers are managing a growing influx of claims not just from large-scale events, but flash floods and localised flooding from saturated soil and strained infrastructure. This is not purely a financial strain, but also on internal and external resources in responding to the frequency and scale of events.

The October floods saw hundreds of communes across 11 departments declared disaster zones. Allocating critical resources such as loss adjusters and claims managers to the worst-impacted areas in the immediate aftermath, while securing the temporary accommodation for those affected, plus materials and labour to repair damage buildings, is a mammoth undertaking for insurers during a loss of this scale.

Mirka: The market is also addressing the requirements of the ‘Baudu Law’, which came into full force in January 2024, introducing CCR reforms to improve the compensation processes for flood victims. The legislation introduces multiple deadlines for claims handling and restoration processes via the scheme, including specific time periods for appointing adjusters, compensation payments and restoration commencement.

The changes also mean that emergency relocation expenses are covered by the nat cat scheme for up to six months, with all property damage insurance contracts now required to include this clause.

Does technology need to play a more prominent role in supporting flood response?

Anke: Absolutely – technology plays a critical function at every stage. The key is to put the insurer in the strongest possible position, as early in the cycle as possible.

In the case of satellite technology, that position strengthening begins days in advance of a flood. Satellite and meteorological data can pinpoint with a high level of accuracy which areas are most likely to be worst impacted. That advanced insight supports more targeted allocation of claims and adjusting resources, while insurers can also begin securing accommodations to get ahead of relocation requirements, as well as materials, while putting restoration professionals on standby.

During a flood event, having near real-time flood data on extent and depth at the building level means every decision is based on an on-the-ground understanding of how the flood is developing. Not only does this support effective triage, it can also empower insurers to make instant payments based on the level of flooding at the property level.

In addition to supporting improved claims triage, access to flood insights also boosts communications, with insurers able to advise policyholders in potentially exposed areas on mitigation measures to reduce losses, while also post event contacting those in flooded areas who have not claimed to encourage them to report flooding to avoid more costly repairs due to damage going unaddressed.

Given the Baudu-related requirements and the stringent timeframes imposed, these capabilities and data can prove invaluable in enabling insurers to deliver for flood victims at the speed required.

Biog

Anke Sielker, head of reinsurance practice, head of insurance Europe and Middle East, ICEYE

Mirka Vahtera, strategic insurance and broker accounts, EMEA and Latin America lead, ICEYE