AMSTERDAM--(BUSINESS WIRE)--AM Best is maintaining its negative market segment outlook on France’s non-life insurance segment.
In its new Best’s Market Segment Report, “Market Segment Outlook: France Non-Life Insurance,” AM Best expects overall non-life premium income in France to continue to grow in 2024, but only modestly once adjusted for inflation. Top-line growth for the segment is historically closely correlated to gross domestic product growth and the French central bank, Banque de France, is forecasting real GDP growth of only 0.8%.
The report also suggests that inflationary pressures will continue to pose challenges for non-life insurers in 2024 by pushing up claims costs. Insurers are expected to adjust their premium rates to counterbalance the inflation-linked deterioration in technical results. However, AM Best considers it unlikely that these increases will be sufficient to fully restore profitability due to high levels of competitive pressures.
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AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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