French insurer Maif chief warns of 'uninsurable' zones without regulation

Pascal Demurger, the CEO of the French mutual insurer Maif, has issued a stark warning: without regulatory intervention, areas increasingly vulnerable to climate change impacts like droughts and wildfires risk becoming uninsurable. He argues that if the market is left to operate unchecked, insurers may withdraw from these exposed regions due to unprofitability.

"If we do nothing, if we just let the market do its thing, then yes, tomorrow, there is a real risk that insurers will withdraw from the most exposed areas because they are not profitable," Demurger stated in a recent interview. He emphasized the need for a collective approach, advocating for "regulation" and "mutualization" among all insurers to collectively manage the risks associated with these territories.

Demurger, who also co-chairs the business movement Impact France, which focuses on the social and environmental impact of companies, made these remarks in the context of discussing compensation for fire victims. His call for collective responsibility reflects a growing concern within the insurance industry about the escalating costs and risks posed by climate-related disasters.

Beyond insurance, Demurger also shared his views on economic policy. He expressed skepticism that tax reductions for businesses would automatically translate into higher wages for employees, particularly for those in lower-paid positions. However, he acknowledged the issue of wage levels and supported measures like a surtax on corporate income for large companies, arguing that all entities should contribute to public finances.

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If we do nothing, if we just let the market do its thing, then yes, tomorrow, there is a real risk that insurers will withdraw from the most exposed areas because they are not profitable.