The key facts

  • The number of affected stores reached 3,000 versus the 1,500 estimated by the Carrefour chief a day earlier; Carrefour reported damage at 50 stores, 20 looted
  • CAC 40 fell 1.1%, the spread between French and German 10-year bond yields widened to ~148 bps
  • In 2023, insured losses amounted to €793 million; the new riot insurance scheme awaits European Commission approval

Number of affected stores doubles

The number of stores damaged during the riots in France over the past weekend has reached at least 3,000 — twice the figure reported a day earlier. On Sunday, the head of Carrefour and chairman of the retail federation FCD, Alexandre Bompard, estimated the number of affected stores at about 1,500 and spoke of industry losses of several hundred million euros. By Monday, the government count had reached 3,000. Carrefour reported damage at 50 stores, 20 of which were looted; among the affected was the Louis Vuitton boutique in Marseille.

Insurers cannot yet assess the damage

The insurers' federation France Assureurs told Euronews that its members are 'fully mobilized to help affected clients,' but was unable to give even a preliminary estimate of losses or state the number of claims filed. The federation's crisis team is working with government authorities across the country after what it called 'extremely violent events.' According to the federation, most French policies for stores and buildings include coverage for 'riots and mass disturbances' — it typically compensates for fire, theft, vandalism and broken windows, as well as the costs of protective shields and security. Compensation for store closure depends on additional business interruption coverage: it is calculated based on lost gross profit, not revenue, and usually applies only if the closure is caused by insured physical damage. Some contracts allow payment even without damage to premises, but only 'in circumstances expressly stipulated in the policy.' Policyholders usually have five days to notify their insurer, and a police report is a condition for some types of coverage.

Markets reacted with a decline

On Monday, the French CAC 40 index closed down 1.1%, worse than the broad Euro STOXX 600 (−0.9%). Carrefour shares fell 2.2%, LVMH — 1.8%. Insurance stocks also declined: AXA lost 1.3%, SCOR — 0.9% in Paris; in Milan, Generali fell 2.3%, Unipol — 3.2%. The yield on French 10-year government bonds rose by about eight basis points to 4.94%, while the German yield added less than four; the spread between the two countries' borrowing costs widened to about 148 basis points.

The 2023 benchmark: €793 million in insured losses

The riots of June and July 2023 brought insured losses of €793 million, France Assureurs reported. Insurers processed about 17,000 claims with an average damage of approximately €46,600. Two-thirds of the amount (about €523 million) related to stores and commercial real estate, a quarter (almost €200 million) to local authorities whose town halls, schools and buses were attacked, and the remaining 7% to vehicles. A Senate inquiry later estimated the total property damage closer to €1 billion: some losses were not claimed, others were only partially covered by insurance. According to CCI France, about 2,500 businesses were affected in 2023 — the current government count has already exceeded that figure.

New insurance scheme not yet in operation

The 2026 budget law made riot damage coverage mandatory for a range of property insurance policies and created a national fund to help insurers with major losses. Insurers will finance the fund through contributions of up to 1.5% of relevant premiums, and the state will provide guarantees of up to €4 billion per year. However, the scheme has not yet come into force: European Commission approval and a government implementation decree are required. For affected companies, this means that compensation will depend on existing insurance contracts.

Government measures and pressure on the budget

Prime Minister Sébastien Lecornu said on Monday that affected companies will be able to place employees on activité partielle — the state-subsidized short-time work scheme — from Tuesday. He called on local authorities to introduce targeted curfews and said a state of emergency would be declared if necessary. President Emmanuel Macron refused to accept the resignation of Interior Minister Laurent Nuñez, after the number of arrests exceeded 2,400. Each government support measure increases the burden on the budget: the deficit this year is forecast at 5.4% of GDP, with public debt at 119% of GDP. The final cost of the riots is still unknown.