The French greenhouse industry is concentrated in three main areas: Brittany, which spans around 450 hectares; the region near Perpignan and Provence, with approximately 350 hectares; and Loire-Atlantiques, which has about 250 hectares. Elsewhere in France, greenhouses are found in smaller, less concentrated quantities.
In recent years, the sector has faced growing risks. Harriëtte Rademakers, a risk expert for the French market at Hagelunie, points out that "France is increasingly dealing with storms, hail, and floods." Coastal regions, like Brittany and parts of southern France, are especially vulnerable to storms. "Southern areas experience significant issues with flooding and forest fires." Rademakers also notes that electrification and varying glass sizes present further challenges in the French market.
© Hagelunie
Harriëtte Rademakers
Climate effects increasingly tangible
French greenhouses are increasingly feeling the impacts of climate change. Data from Aon, Munich Re, and others indicate that global climate-related damage is expected to rise by 75% in 2024 compared to 2020. In Western Europe, damage grew by 66% annually between 2022 and 2023. "These numbers are significant and suggest that extreme weather events will continue to rise."
For Hagelunie, addressing these challenges involves more than just paying out compensation; it also means offering immediate support. "When problems arise, we act swiftly. With our team of damage experts, we possess the specialized knowledge and agility needed to respond effectively. It's beneficial for everyone: the sooner a producer can restart operations, the better it is for all involved."
As investments rise, so do risks
In France, modern greenhouse farming is moving towards larger and more costly greenhouses, often situated in high-risk areas like coastal regions. "The frequency and impact of disasters are both rising, and these crops represent substantial assets. This poses a challenge for insurers, but we are committed to addressing it. We continuously work with our reinsurers to find ways to ensure ongoing coverage."
New developments: solar panels and electrification
In the sunny south of France, more greenhouses are being outfitted with solar panels. Rademakers notes this growing trend: "There are business models where companies construct solar-equipped greenhouses and lease them to farmers. The company uses the generated energy for about 20 years, after which the greenhouse becomes the farmer's property. This model is particularly prevalent in areas with abundant sunshine."
However, the shift towards electrification introduces new risks. By 2050, French electricity demand is expected to rise by 35 to 50%, driven in part by the use of heat pumps, electric heating, and battery storage. "This trend is also evident in greenhouse agriculture. Increased electrification brings with it a higher risk of load peaks and grid outages, which can have significant consequences for producers."
In response, Hagelunie is exploring strategies beyond traditional insurance. "We're investigating ways to enhance prevention in this area. This includes conducting risk inspections of electrical systems, utilizing ground and waste heat, and positioning inverters in protected locations. Our goal is to minimize risks before any damage occurs."
Non-standard glass sizes
Another concerning trend is the use of non-standard greenhouse pane sizes. "Builders are increasingly choosing custom solutions, but this complicates repairs. Glass often has to be sourced from China, with delivery times of five to six weeks, which can be disastrous in emergencies. Therefore, we advocate for greater standardization."
Rademakers emphasizes the importance of early insurer involvement. "We prefer to be engaged from the start. By participating in the design phase of facilities or investments, we can advise on sensible choices, like using uniform types or formats of materials. This requires coordination within the sector, as contractors often have limited control over these decisions. By working together, we can develop practical, safe, and future-proof solutions."
Insurance in the broadest sense
Hagelunie provides comprehensive insurance coverage in France, protecting against not only hail but also fires, storms, floods, and even vandalism. "There are also challenges like opposition to artificial production methods or light pollution, which can sometimes lead to intentional crop damage."
Lastly, Rademakers emphasizes the increasing significance of cybersecurity in the ever-more digital sector. "As automation becomes more prevalent, the risk of cybercrime also rises. This is a new challenge that needs to be addressed throughout the entire sector."
Hagelunie's strength comes from its specialized expertise and extensive global network, Harriëtte says. "We operate not only in Europe but also in countries like Canada, which helps us distribute risk. While disasters occur worldwide, they rarely happen everywhere simultaneously. This geographical spread enables us to maintain our coverage even if a significant disaster strikes in France. Additionally, we don't just respond to claims; we proactively help farmers manage future risks. To me, this proactive approach is our true added value."
For more information:
Harriëtte Rademakers
Hagelunie 
Harriette.rademakers@hagelunie.com
www.hagelunie.com