The automobile insurance market - France

Motor insurance, based on the principle of indemnity, covers damage incurred while driving a motor vehicle. In France, motor insurance has been compulsory since 1958 , and its purpose is to provide financial support in the event of losses sustained by an insured party in a road accident. Insurance companies in France offer a wide range of cover and products, and motor insurance still has a significant share of the French insurance market. Motor insurance belongs to the property and casualty insurance segment, and accounts for almost 40% of sales generated by this segment, ahead of comprehensive home insurance at 20%. The global motor insurance market is set to continue its positive trend over the next few years, with a compound annual growth rate of 9. 4% between 2023 and 2028. The French market is also showing positive growth, with the number of cars insured rising by 4% between 2018 and 2022, and motor insurance premiums increasing by 10% over the same period. The car insurance market is highly concentrated and dominated by the insurance or bancassurance giants. However, new entrants such as assurtech and neo-insurers like Léocare are trying to enter the market. Intensifying competition and tightening regulations are forcing players in the car insurance market to focus their strategy on customer satisfaction. The car insurance market must now deal with the provisions of the Hamon law, allowing policyholders to cancel their contracts more easily. What's more, in a difficult financial context for some French households, car insurance prices are on the rise, and some are considering stopping their insurance, even if it means breaking the law.