Non-Life Insurance in France Recorded Positive Growth in 2011, States Timetric14 Aug 2012 • by Natalie Aster
Despite the difficult economic environment in Europe, the French non-life insurance segment recorded positive growth during the review period. This was mainly supported by the country’s rising disposable income levels, recovering property market and increasing motor insurance premiums. Furthermore, the insurance regulatory authority made several non-life insurance policies compulsory in France, including motor third-party liability insurance, home insurance and family civil liability insurance, and this generated more business for the segment. In addition, the non-life insurance segment is expected to benefit from the increased levels of risk awareness and preparation for risk avoidance among French consumers. The written premium from the non-life insurance segment increased at a CAGR of 2.0% during the 2007–2011 review period. Property insurance accounted for 49.1% of the French non-life insurance written premiums in 2011, followed by motor insurance with the second-largest share of 40.7%. This situation is expected to continue over the forecast period.
According to the report “Non-Life Insurance in France, Key Trends and Opportunities to 2016” by Timetric, the French insurance regulatory authority has made a number of insurance policies compulsory, including motor third-party liability insurance, home insurance and family civil liability insurance. Motor third-party liability insurance is required by all vehicle owners in the country to cover a vehicle owner’s liability for all bodily damages to third persons and to cover all financial damages to other vehicles. Furthermore, home insurance has been made compulsory, which provides the insured resident guarantees to protect their family assets against the consequences of accidents affecting home. The authority also made family civil liability insurance compulsory.
The property category dominated the non-life insurance segment during the review period, and accounted for 49.1% of the segment’s total written premiums in 2011. The property insurance category grew at a CAGR of 2.5% during the review period, primarily driven by the expanding construction and real estate industries in the country. The property insurance category also benefited from improving consumer awareness of the risks of natural disasters in the country.
Non-Life Insurance in France, Key Trends and Opportunities to 2016
Published: July, 2012
Price: US$ 1.950,00
The Solvency II standards set new capital adequacy requirements and risk management directives which are increasingly being adopted across the global insurance industry. The existing insurance directives will be amended and revised to Solvency II standards across Europe in order to introduce a consistent and risk-based solvency regime that reflect the modern solvency and reporting requirements. The implementation of the Solvency II regulations is expected to tighten the French non-life insurance regulatory regime by introducing higher capital requirements and stringent risk management standards. This has forced French non-life insurers to gradually make their investment portfolios less risky by reducing their investments in high-risk assets. Furthermore, the higher capital requirement will force smaller companies in the segment to merge with larger companies in order to continue operating in the country, which will result in consolidation in the segment.
More information can be found in the report “Non-Life Insurance in France, Key Trends and Opportunities to 2016” by Timetric.
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