LONDON--(BUSINESS WIRE)--AM Best is maintaining its market segment outlook on the French non-life insurance market at stable. Key supporting factors include the sector’s resilient underwriting performance against a backdrop of significant competition, modest but regular price increases in core classes of business and good diversification by class of business.
A new Best’s Market Segment Report, titled, “Market Segment Outlook: France Non-Life” notes that in 2020, non-life premium levels are expected to drop as commercial activity in France has stalled amid restrictions imposed in response to the COVID-19 pandemic. France is expected to enter recession this year, but its potential severity and the timing of a rebound are uncertain.
AM Best notes that the French non-life segment’s diverse business mix is expected to moderate the impact of the pandemic and expected contraction in GDP on insurers’ premium volumes. Compulsory insurance products, such as motor, are expected to be more resilient to an economic downturn and provide an offset to pro-cyclical markets, such as credit or construction insurance, which are expected to see larger drops in premium.
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