On 19 October 2026, the French Senate adopted, at first reading, a proposed law “to recognise a national climate change adaptation policy and adapt insurance mechanisms” (Texte n° 10, 2026-2027). Among its provisions, Article 3 would reform how the additional premium that funds the natural-catastrophe (CatNat) regime is governed.
The reform would change the rate mechanism in three ways.
- First, it introduces a mandatory review cycle: the CatNat rate would have to be revalued at least every five years, following an opinion from the Caisse Centrale de Réassurance (CCR).
- Second, it sets a clear timeline for any change to take effect: a revaluation would apply from 1 January following the expiry of a six-month period after the relevant order is published, under conditions to be set by decree.
- Third, it would permit the rate to be differentiated by policyholder type, allowing legal entities (companies) and individual entrepreneurs to be subject to a different rate level from that applied to other individuals.
In short, the CatNat would no longer be static: it would gain a recurring, CCR-advised review mechanism, and the government would acquire the ability to set a separate rate for businesses as distinct from private individuals.
It is important to note that this remains a proposal. The text was only submitted and adopted at first reading in the Senate on 19 October 2026, and must still complete the parliamentary shuttle between the National Assembly and the Senate before any final adoption. Its provisions, including the CatNat governance mechanism, may be amended or withdrawn before promulgation, and several elements (including the rate levels and the business/individual split) are deferred to implementing decrees. Insurers should therefore treat these measures as proposed rather than confirmed, and should not yet reconfigure tax determination or pricing on this basis.
Sovos will continue to monitor the parliamentary process and will issue a further update once the measure is confirmed, amended, or dropped.
