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.
To access a complimentary copy of this market segment outlook, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=296416.
To view current Best's Market Segment Outlooks, please visit http://www.ambest.com/ratings/RatingOutlook.asp.
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Contacts:
Pierre Tournier
Senior Financial Analyst
+31 20 308 5423
pierre.tournier@ambest.com
Ghislain Le Cam, CFA, FRM Director, Analytics
+44 20 7397 0268
ghislain.lecam@ambest.com
Richard Banks
Director, Industry Research EMEA
+44 20 7397 0322
richard.banks@ambest.com
Edem Kuenyehia
Director, Market Development Communications
+44 20 7397 0280
edem.kuenyehia@ambest.com
