France Insurance Market Intelligence: 2011 Edition
The French insurance sector is one of the crucial sectors of the economy as leading institutional investors and the amount of their investment accounts for substantial percentage of the country’s GDP. The French insurers have made significant contribution in stabilizing the economic system during the financial crisis.
Despite the economic crisis and tough market conditions, performance of life and non-life segments in insurance sector improved in 2009. However, the growth pattern for both the segments was in complete contrast with life insurance business growing intensively due to increased demand and non-life segment facing a slow down and henceforth a modest expansion. The profitability deteriorated for non-life insurers as the violent weather events severely impacted the country in 2009 and escalated losses with higher claim settlements in the year.
With the existing slow recovery of economy and improvements in financial market, insurance will continue to be a preferred investment option in France. Moreover, the insurance sector in France is expected to maintain consistent growth as demand for insurance products will grow in the near future, especially demand for life insurance products.
Despite the economic crisis and tough market conditions, performance of life and non-life segments in insurance sector improved in 2009. However, the growth pattern for both the segments was in complete contrast with life insurance business growing intensively due to increased demand and non-life segment facing a slow down and henceforth a modest expansion. The profitability deteriorated for non-life insurers as the violent weather events severely impacted the country in 2009 and escalated losses with higher claim settlements in the year.
With the existing slow recovery of economy and improvements in financial market, insurance will continue to be a preferred investment option in France. Moreover, the insurance sector in France is expected to maintain consistent growth as demand for insurance products will grow in the near future, especially demand for life insurance products.
1. INDUSTRY SNAPSHOT
1.1 Industry Structure
1.1.1 Fourth largest in the world in terms of GWP in 2009
1.1.2 Merger of CEA and Insurance & Mutuals Control Authority to form Prudential Control Authority
1.1.3 80% people covered under general health insurance
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Growth in personal and property insurance attributed growth in overall premiums
1.2.1.2 Rise in demand for Euro based contracts in 2009
1.2.1.3 Increased claims due to weather related events eroded profits of non-life insurers
1.2.2 Market Segments
1.2.2.1 Non-life insurance dominated by auto and homeowner's comprehensive insurance
1.2.2.2 Rise in combined ratio in 2009 due to increasing claims
1.2.2.3 Demand for unit-linked policies declined in 2009
1.2.3 Market Density & Penetration
1.2.3.1 Slight growth in insurance density
1.2.3.2 Escalating demand for life insurance products increased penetration rate in 2009
1.2.4 Market Share
1.2.4.1 Groupama and Covea lead the non-life segment
1.2.4.2 State-controlled CNP Assurances remained as market leader in life insurance
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Amendments in French Bancassurance
Changing Rules on Product Tying
BNP Paribas Announces Acquisition of Dexia
Cegedim Acquires Hosta
2.2 Market Drivers
Improvement in GDP Growth rate
Increasing Demand for Insurance Products
Growth in Health Insurance
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Shifting focus on long term savings & investment increased demand for life insurance
4.2 Economic recovery driving overall premiums growth
1.1 Industry Structure
1.1.1 Fourth largest in the world in terms of GWP in 2009
1.1.2 Merger of CEA and Insurance & Mutuals Control Authority to form Prudential Control Authority
1.1.3 80% people covered under general health insurance
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Growth in personal and property insurance attributed growth in overall premiums
1.2.1.2 Rise in demand for Euro based contracts in 2009
1.2.1.3 Increased claims due to weather related events eroded profits of non-life insurers
1.2.2 Market Segments
1.2.2.1 Non-life insurance dominated by auto and homeowner's comprehensive insurance
1.2.2.2 Rise in combined ratio in 2009 due to increasing claims
1.2.2.3 Demand for unit-linked policies declined in 2009
1.2.3 Market Density & Penetration
1.2.3.1 Slight growth in insurance density
1.2.3.2 Escalating demand for life insurance products increased penetration rate in 2009
1.2.4 Market Share
1.2.4.1 Groupama and Covea lead the non-life segment
1.2.4.2 State-controlled CNP Assurances remained as market leader in life insurance
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Amendments in French Bancassurance
Changing Rules on Product Tying
BNP Paribas Announces Acquisition of Dexia
Cegedim Acquires Hosta
2.2 Market Drivers
Improvement in GDP Growth rate
Increasing Demand for Insurance Products
Growth in Health Insurance
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Shifting focus on long term savings & investment increased demand for life insurance
4.2 Economic recovery driving overall premiums growth
LIST OF CHARTS
Annual Premium – French Insurance Industry: 2002-2009
French Insurance Premium Share (%) by Segment – 2009
French Insurance premium by segment – 2002-2009
French Distribution of claims in 2009
French Life Insurance Premium Share (%) by Segment – 2009
French Non-Life Insurance Premium Share (%) by Segment – 2009
French Insurance Industry – Combined ratio 2002 – 2009
French Insurance Density (US$): 2002 – 2009
French Insurance Penetration: 2002 – 2009
France: Major Non-Life Insurer’s Market Share: (2009)
France: Major Life Insurer’s Market Share: (2009)
GDP Growth Rate of France
France Household investment in Long Term Saving Products: 2009
France: Collections from Life Insurance Contracts (2002 - 2009)
Expenditure on Health Insurance in France (2005 - 2009)
Forecast: France Insurance Industry: 2009A - 2013F
Forecast: France Life & Non-Life Insurance Industry: 2009A - 2013F
Annual Premium – French Insurance Industry: 2002-2009
French Insurance Premium Share (%) by Segment – 2009
French Insurance premium by segment – 2002-2009
French Distribution of claims in 2009
French Life Insurance Premium Share (%) by Segment – 2009
French Non-Life Insurance Premium Share (%) by Segment – 2009
French Insurance Industry – Combined ratio 2002 – 2009
French Insurance Density (US$): 2002 – 2009
French Insurance Penetration: 2002 – 2009
France: Major Non-Life Insurer’s Market Share: (2009)
France: Major Life Insurer’s Market Share: (2009)
GDP Growth Rate of France
France Household investment in Long Term Saving Products: 2009
France: Collections from Life Insurance Contracts (2002 - 2009)
Expenditure on Health Insurance in France (2005 - 2009)
Forecast: France Insurance Industry: 2009A - 2013F
Forecast: France Life & Non-Life Insurance Industry: 2009A - 2013F
LIST OF TABLES:
Key Macroeconomic Indicators: (2009 – 2013F)
Key Macroeconomic Indicators: (2009 – 2013F)
