AM BestTV: Product Penetration Aids Stable Outlook for French Life Insurance Market, Says AM Best Senior Financial Analyst

OLDWICK, N.J.--()--In this AMBestTV episode, Pierre Tournier, senior financial analyst, AM Best, said about 40% of French household savings are invested in insurance offerings. Click on http://www.ambest.com/v.asp?v=frenchlife_english519 to view the entire program.

AM Best has placed a stable market segment outlook on France’s life insurance market. Tournier discussed the rationale for that outlook.

“Over the past few years, the French life market has continued to produce profitable results,” said Tournier. “The market has taken active management in this current low-interest rate environment and continues to enjoy positive net flows, something that is a good sign for a healthy industry. Additionally, the French life insurance market enjoys a privileged place in individual savings schemes, with 40% of household savings invested in life insurance policies.”

Tournier also addressed how the sector has navigated the low-interest rate environment.

“It is quite challenging. The 10-year rate remains around 80 basis points and short-term rates have been negative for the past few years. The French life insurance industry, though, has continued to manage its crediting rates down; consequently, maintaining these profitable results.”

Looking forward, Tournier said he expects the segment to remain profitable in the medium term. “AM Best believes that the sector has the willingness and the ability to manage down its rates, as well as the financial flexibility to do so,” he said.

To access a copy of this market segment report, titled, “Market Segment Outlook: French Life”, visit http://www3.ambest.com/bestweek/purchase.asp?record_code=284228.

Recent AMBestTV episodes:

  • Germany’s Life Sector Burdened by Product Commitments and Reserving, Says AM Best Financial Analyst: Martina Seydoux, financial analyst, AM Best, said Germany’s life insurers are squeezed by commitments to products that require higher margins, although amended regulations will require them to reserve less against prolonged low interest rates: http://www.ambest.com/v.asp?v=germanlife519.
  • Despite Storms, Outlook for Germany’s Non-Life Sector Stable, Says AM Best Financial Analyst: Konstantin Langowski, financial analyst, AM Best, said despite a slight deterioration of the combined ratio for Germany’s non-life industry in 2018, the overall sector's financial condition still supports a stable market segment outlook: http://www.ambest.com/v.asp?v=germannonlife419.
  • To Cover the Biggest Risk Needs, Think Microinsurance: Attendees at the International Insurance Society (IIS) Global Insurance Forum said insurers coming together to create programs and products, along with technology, are helping to bring insurance coverage to developing and impoverished regions: http://www.ambest.com/v.asp?v=iis3619.
  • Closing the Protection Gap Takes More Than Insurance: Insurers gathered at the IIS Global Insurance Forum said new analytic tools and better risk reduction will help reduce losses to disasters, not just transfer more risk to insurers: http://www.ambest.com/v.asp?v=iis2619.

AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View AM BestTV episodes at http://www.ambest.tv.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

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Contacts

Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com

Contacts

Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com