The key facts
- Morningstar DBRS analysts estimate potential insurance losses at up to €1.2 billion; brokers say losses could exceed €1 billion.
- Losses have already exceeded the €700 million from the 2023 riots.
- According to French Trade Minister Serge Papin, at least 3,000 businesses were affected.
Scale of the damage from the unrest
Mass riots in France that took place over the past weekend may rank among the largest in the country, and insurance losses from them could reach €1.2 billion. This was reported by the Financial Times, citing Morningstar DBRS analysts. Brokers also stated that potential losses could exceed €1 billion. By Monday evening the streets had become calmer, but according to sources at the publication, costs could grow even further if the unrest continues.
Comparison with 2023 and reasons for the increase
Losses from this weekend's riots quickly exceeded the more than €700 million in insurance payouts incurred from the 2023 riots, which lasted more than a week. Morningstar analyst Marcos Alvarez explained this by the fact that the recent street violence was 'very intense and widespread,' as well as by the rising cost of damage compensation due to inflation. According to him, mass riots in France are becoming 'similar to natural disasters,' and now damage in the hundreds of millions of euros is expected every year.
Affected businesses
According to an estimate by French Trade Minister Serge Papin, at least 3,000 businesses across the country were affected by the riots. Among the attacked stores were luxury retail outlets, including Louis Vuitton and Kenzo.
