the automobile insurance market | France

1.1 INTRODUCTION

L' automobile insurance on the principle of compensation, covers damage caused by the operation of a motor vehicle. In France, car insurance has been compulsory since 1958 and its objective is to provide financial support in the event of losses suffered by an insured person in a road accident. The guarantees and offers offered in France by insurance companies are diverse and car insurance retains a significant share of the insurance market in France. Automobile insurance belongs to the property and liability insurance segment and represents nearly 40% of turnover generated by the segment, ahead of 20% for property and casualty insurance

The French motor insurance market has been growing steadily in recent years. The car insurance market is dominated by insurance or bancassurance giants, leaving little room for new entrants. Four main types of actors are then distinguished

• The insurers traditional (insurance companies meeting the insurance code)
• The banks-insurance or bancassurance companies (subsidiaries of banking groups)
• The mutual insurers (groups composed of mutuals or unions of mutuals meeting the mutuality code)
• The joint groups (pension funds complying with the Social Security Code)

Increased competition and tighter regulations are driving car insurance market players to focus their strategy on customer satisfaction. The auto insurance market must now deal with the provisions of the hamon law allowing policyholders to more easily terminate their contracts. In addition, in a difficult financial context for some French households, car insurance prices are on the rise with a growth of 1.5% over 2018.