You may not be aware of this special tax levied on your home and auto insurance contracts. Talk-Survey Rate Here!
The Cat’Nat tax rate will be reassessed, why?
The Cat’Nat Natural Disaster Fund isn’t really new. We’re talking here about the Barnier Fund being fed with a special tax levied on all MRH and auto contracts. The Cat’Nat tax was initially set at 6% in 1982. Two years later, it was increased to 9%. today, This special tax is 12% for home insurance and 6% for car insurance.
Policyholders fear a Cat’Nat tax increase. Let us not forget that this fund has been in deficit since 2015 due to the many natural disasters that regularly affect France. They get more violent every year.
According to Section L125-1 of the Insurance Act, the Cat’Nat tax covers direct, uninsurable physical damage for which the specific cause was an abnormal density of a natural factor, when the usual measures to prevent such damage cannot or cannot be taken.
Alarming numbers for natural disasters in 2022
Violent bad weather wreaks havoc every year in France. The months of May and June were very difficult for thousands of French due to natural disasters. In fact, losses have been estimated at more than one billion euros by professionals inhousing insurance during this period.
France Assureurs has already prepared a preliminary assessment of the bad weather in May and June 2022. Thousands of casualties and dozens of injured have already been announced. In detail, Fendi, the Loire Atlantic, and the Southwest experienced thunderstorms from May 20-23. The results are unfortunate: more than 93,000 residents sustained material damages at a cost of 323 million euros.
On Friday, June 3, the southwestern and central mountains were hit by thunderstorms accompanied by hailstorms and heavy flooding. The next day, mudslides were observed in Grand Est due to thunderstorms. Declared damages are estimated at 940 million euros, including 410 million euros for home insurance and 370 million euros car insurance.
The total cost of damages related to bad weather in May and June is estimated at €1.26 billion. Given this assessment, it is very likely that the government will reassess the Cat’Nat tax rate soon. Of course, an official date has not been announced yet.