The Court of Auditors is calling for a reform of the procedure for recognizing a state of natural disaster, arguing that the system, while generally effective, remains insufficiently transparent for those affected and local elected officials. In a report published this Monday, the institution highlights, in particular, the numerous misunderstandings surrounding the decisions to grant or deny recognition.
This mechanism allows municipalities affected by exceptional natural events to benefit from the natural disaster compensation scheme. Once the event is recognized by the State, victims can be compensated for damages that are not generally covered by standard insurance.
An essential system for disaster victims
The "Cat Nat" scheme applies particularly in the event of floods, droughts causing cracks in buildings constructed on clay soils, or cyclones. Its funding is based on a surcharge paid by all policyholders, which then allows insurance companies to benefit from a public reinsurance system.
According to the Court of Auditors, the administrative management of the system has improved over the last decade and now operates relatively efficiently, with limited management costs in view of the financial stakes involved.
Decisions that are sometimes contested
The institution emphasizes, however, that the criteria used to grant or deny recognition of a natural disaster remain difficult for many elected officials and residents affected by a disaster to understand. This situation regularly fuels local disputes when certain municipalities are excluded from the system.
The Court of Auditors also notes that the procedure can be subject to pressure from various actors, whether political or from the insurance sector, with the aim of obtaining recognition even when the technical criteria are not fully met.
An advisory committee has been called for
To strengthen confidence in the system, the financial jurisdiction recommends the rapid establishment of the advisory commission on natural disasters provided for by the 2021 law. This body would notably have the mission of providing greater visibility on the criteria used and on the decisions taken by the competent authorities.
The stated objective is to make the process more readable and transparent, in order to reduce disputes and better inform communities facing increasingly frequent climate events.
Improved monitoring of compensation claims requested
Beyond the recognition phase, the Court also considers that support for victims after the decision remains insufficiently regulated. It believes that the relationship between victims and insurers currently constitutes a weak point in the system.
The institution therefore recommends stricter oversight of the activities of experts appointed by insurance companies, as well as better adherence to legal compensation deadlines. These measures aim to ensure faster and fairer support for those affected by natural disasters.
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