France introduces mandatory riot coverage in property insurance policies

France has adopted a major reform through Finance Law No. 2026 103, introducing new Articles L.12 11 1 et seq. into the French Insurance Code. This reform establishes mandatory insurance coverage for damages resulting from riots in all property damage insurance policies. The effective date of the reform has not yet been announced.

Because riot coverage has historically varied between insurers and was often limited for high risk locations, the new regime reshapes how the French market underwrites this risk. Riots which occurred in May 2024 in New Caledonia accelerated these discussions and prompted several insurers operating in the French overseas territories to revise their underwriting policies, including withdrawing riot coverage from certain policies and, in some cases, considering a full withdrawal from these territories.

Under the new provisions, all property damage policies must now automatically cover riot related direct material losses for all property insured. This also extends to business interruption losses, when such coverage already exists in the policy. 

No exclusion is permitted. Any clause attempting to exclude certain assets or limit the scope of coverage is deemed void. In parallel, the Ministry of Economy will publish mandatory policy clauses, which insurers must incorporate into their contracts.

The law provides a definition of a riot. An event qualifies when it involves:

• a collective action,
• directed against public authorities,
• expressing political or social protest or seeking political or social demands,
• involving violence, and
• causing significant economic damage.

According to commentators, this definition should exclude declared and peaceful demonstrations, and certain violent acts that disrupt public order but are not directed against public authorities¹. The new system introduces a commission for riot qualification, which will determine whether an event meets the legal definition based notably on the number of participants, the severity of material damages and the police response.

The Bureau central de tarification, i.e. the French body that can compel insurers to provide certain mandatory covers (e.g., motor third party liability), now has jurisdiction over riot coverage. If an insurer refuses to cover due to exposure to riots, the applicant may petition the BCT, which can require the insurer to provide coverage, and allocate the risk among multiple insurers if necessary.

A central element of the reform is the establishment of a riot risk mutualisation fund, managed by the state owned reinsurer (Caisse Centrale de Réassurance). Key features include:

• Insurers may cede riot related losses to the fund.
• The fund indemnifies insurers for at least 90% of riot losses ceded.
• The fund benefits from a State guarantee, offered on a paid basis.
• The fund is financed by a solidarity contribution levied on insurers.

In response to the withdrawal of insurers in these territories, an additional provision allows local authorities in New Caledonia and French Polynesia to sign a convention with the French State allowing insurers operating locally to cede the risk of riot to the national fund and receive indemnification from it in case of a riot related loss.

^{1 Pierre-Grégoire Marly, Risques d'émeutes : de l'exclusion présumée à la garantie obligatoire, LEDA févr. 2026, n° DAS202z8}