The credit insurance market - France

The global financial protection market, which includes mortgage payment protection, was valued at $53.34 billion in 2020 and is projected to grow to $77.44 billion by 2030, at a CAGR of 3.8%. In France, the creditor insurance sector faced significant regulatory changes with the introduction of the Lemoine law in 2022, which has affected the market dynamics by allowing borrowers to switch insurance providers more freely.

The French loan insurance market also grew notably, with a 3.91% increase in 2022 over the prior year, reaching an estimated market size of 11.44 billion euros. This growth is part of a consistent expansion with an average annual growth rate of 5.19% from 2018 to 2022. Home loans remain a substantial portion of the insurance premiums, despite a decline in the number of such loans granted due to rising interest rates.

The bancassurance model continues to hold a dominant position in the French market, capturing nearly 83% of the market share in 2021, with major players including CNP Assurances, Crédit Agricole Assurances, and Crédit Mutuel dominating the sector. Despite the challenges, including the property crisis in 2023, the sector appears to maintain resilience due to its foundational role in supporting the financial security of French borrowers

Navigating the Dynamic Landscape of French Creditor Insurance

In the intricate financial ecosystem of France, creditor insurance has emerged as a pivotal instrument, safeguarding borrowers against unforeseen contingencies.

The intertwining of real estate dynamics with loan insurance premiums is evident, as changes in property prices and bank lending rates directly influence demand.

Furthermore, regulatory transformations — the Lemoine Law being a case in point — are tilting the scales in favor of policyholders, instilling a greater degree of freedom and authority.

The coverage umbrella for borrowers is comprehensive, spanning death, total and irreversible loss of autonomy, and disability, to mention a few. This robust protective shield underpins the financial stability of nearly 90% of borrowers insured for disability and death. Meanwhile, the risk landscape is witnessing a shift, with the proportion of doubtful outstandings dwindling, thanks largely to stringent personal indebtedness regulations.

In the realm of real estate, the loan insurance market is intricately tethered to the vibrancy of the sector. Premiums linked to mortgages, representing over two-thirds of total contributions, have witnessed a shift. From a towering 73% dominance in 2016 to a relatively lesser but still significant 67% in 2022, the evolving market structure speaks to the shifts within the French economic climate. Nonetheless, the real estate sector continues to pulsate with vigor, undeterred by global headwinds.

The consumer credit market, dovetailing approximately 20% with the creditor insurance market, paints a different picture. A noticeable contraction is taking place, with the rate of credit ownership among households reaching its nadir since the 1980s. With mortgage ownership rates maintaining their stance, the juxtaposition of rising interests and regulatory changes manifests in the consumer credit domain experiencing a downturn that is predicted to perpetuate into 2023. The study paints a picture of a market in a state of flux, shaped by external economic forces and internal regulatory shifts. The French creditor insurance sector stands at the convergence of these trends, encapsulating a market estimated between 10 and 12.

Leading Forces in the French Creditor Insurance Landscape

As we scrutinize the dynamics of the French creditor insurance market, a few names stand out, reflecting the entrenched influence and market dominance of these pivotal institutions. These organizations not only mold the sector’s trajectory but also serve a broad spectrum of clients, offering them a sense of financial security and stability in the face of life's uncertainties.

• CNP Assurances : CNP Assurances features as a central pillar in the market, renowned for its long-standing reputation and deep-rooted presence in the insurance industry. As a heavyweight champion in the creditor insurance realm, it caters to a vast clientele, offering bespoke solutions that range from mortgage insurance to various forms of borrower protection. Its expansive portfolio has cemented CNP Assurances' status as a synonym for reliability and comprehensive coverage in the French insurance market.
• Crédit Agricole Assurances : A prime example of the successful fusion between banking services and insurance offerings, Crédit Agricole Assurances embodies the essence of bancassurance. By providing an all-encompassing suite of financial products, this institution not only simplifies the customer journey but raises the bar for convenience and product integration. It's this strategic combination of services that enables Crédit Agricole Assurances to capture a significant share of the market and to assert itself as an authority in the industry.
• Crédit Mutuel : Crédit Mutuel has leveraged its strong banking foundations to branch out effectively into the world of insurance, tailoring its offerings to meet the nuanced needs of its broad customer base. As a go-to for many seeking personalized borrower insurance options, Crédit Mutuel prides itself on understanding and addressing the specific requirements of various customer segments, ensuring that their path to financial safeguarding is both clear and accessible.
• AXA : AXA's standing as a global insurance giant is reflected in its commanding presence in the loan insurance sector. Renowned for its extensive experience and global perspective, AXA brings a level of sophistication and international flair to the table. Policyholders are attracted to its stellar reputation for delivering quality service and a wide range of insurance products that protect against unforeseen circumstances and align with their diverse financial objectives.
• Generali : With its storied history and penchant for innovation, Generali has established itself

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 12/10/2023

Summary and extracts

List of charts

• Gross doubtful loans on housing loans granted in France, in billions of euros and as a % of total outstandings
• Rate of gross doubtful loans by object
• Percentage of borrowers covered by borrower's insurance
• Average monthly amount of new housing loans to individuals, flows CVS
• Number of bank loans granted (Crédit logement: Base 100 December 2020), Year-on-year levels
• Breakdown of contributions by loan type
• Average mortgage loan insurance rates by profile
• Market share of bancassurance in the loan insurance market
• Market share of the 3 main players in the loan insurance market
• Mortgages and consumer credit rates
• Estimated evolution of the global financial protection market
• Average term of personal loans (market average)
• Premiums for death cover under loan insurance contracts
• Premiums for disability coverage under creditor insurance contracts
• Premiums for job loss cover under loan insurance contracts
• Total premiums for loan insurance policies
• Breakdown of loan insurance premiums by purpose and value
• Number of establishments (Other Insurance: 6512Z)
• Number of employees (Other Insurance: 6512Z)