The French government, in its latest Finance Act 2025 (Law no. 2025-127 of February 14, 2025 and Decree no. 2025-135 of February 14, 2025), has decided to increase the insurance tax on fire cover from 7% to 12%.
This concerns property permanently and exclusively assigned to professional use, with the exception of the following risks, which are maintained at 7%:
– agricultural risks (we are talking about agriculture, not agri-food)
– local authority administrative buildings
The other categories of assets remain unchanged.
Insurance tax on fire-related business interruption coverage also rises to 12%, except for agricultural activities, where it remains at 7%.
These provisions will apply from July 1, 2025 for contracts with a principal expiry date on or after this date.
It should be pointed out that this tax increase will not lead to a 5% rise in property insurance premiums. In fact, since fire insurance premiums account for between 40% and 60% of the total premium, the final impact will be in the region of 2% to 3% on the total premium, all taxes included.
Read the article here.
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