Loan insurance reform in France: Property and casualty

Loan insurance reform in France: The French parliament passed a law amending loan insurance in February 2022, and it went into effect on June 1, 2022. Three major changes have been made to the new texts: 

Also Read: Insurers World – Ranking of insurance companies in 2022

The borrower can now switch insurers at any moment and for no additional cost. This rule has been in effect for new insurance contracts since June 1, 2022, and for existing insurance contracts from September 1, 2022.

The medical form is no longer applicable to anyone who borrows less than 200 000 EUR (213 806 USD) and whose credit expires before their 60th birthday.

The right to forget deadline for persons who have cancer or hepatitis C has been shortened from ten to five years.

Property and casualty insurance in France.

Non-life insurance's market share in France has continued to expand from 2010 to 2020, rising from 22% to 30% of total premium income across all lines.


With premium growth that is obviously low year to year but has been continuously expanding for the previous 10 years, the motor class of business maintains its grip on the property and casualty market.

The non-life personal lines class of business, like the motor sector, is enjoying regular but more continuous development, with a 46.8% gain for the period under consideration.

The insurance of professional and agricultural property, which has seen a decrease in premium income, is in third place among the non-life business classes.

The excellent growth of the risks of legal protection, help, pecuniary loss, credit and surety, whose premium revenue in 2020 will exceed that of professional and agricultural property insurance, is particularly noteworthy.

Construction and natural catastrophes premiums have slowed over the last ten years, with construction premiums somewhat decreasing and natural catastrophes premiums marginally increasing.

Premiums for property and casualty insurance in France from 2019 to 2020

Despite a tough economic and health environment, non-life activity remained largely stable in 2020, with underwriting increasing by roughly 1%. Premiums rose in the lines that were least affected by the epidemic, such as vehicle (+1.3%) and personal property (+2.7%).

Property insurance for professionals/companies is the only business sector that has seen a decrease in premium income of 1.2 percent.

With 23.1 billion EUR in premium income and a 39 percent market share in 2020, automobile insurance will account for the majority of non-life industry.

Overall, the motor industry ranks third among all classes of business (life and non-life) with 11.5 percent of total premium income, trailing only the life-capital and health-bodily injury categories.

Property and casualty insurance is expected to account for (1):

  • 59.2 billion EUR in contributions, 
  • 42.9 billion EUR in claims payments, 
  • 72.5 percent gross loss ratio, 
  • 12 million claims, 
  • 32 610 claims per day, comprising 19 200 motor claims (-19%), 9 750 homeowners claims (-4%), and 3 660 business risk claims (+26%).

(1) Figures from the French Insurance Federation.

In France, there are two types of non-life insurance:

Property and casualty losses were incurred.

The professional and agricultural property and natural catastrophes classes of business had the largest loss experience between 2010 and 2020, with respective growth rates of 129 percent and 121 percent.

The loss experience gains in automotive and personal property partially offset the loss experience slippage in these two areas of business in 2020.

The vehicle expense has increased by 12.2 percent over time, while premiums have increased by 26.2 percent, resulting in a loss ratio improvement of 14 points in ten years.

Losses incurred: 2019-2020

In general, incurred losses have grown faster (+2%) than premium income (+1%) in the property and casualty market.

Non-life insurers will handle 12 million claims in 2020, or 32 610 each day. The personal lines risk, motor, and homeowner's insurance classes of business have seen a large decline in claims as a result of the health crisis. Professional and commercial claims, on the other hand, surged dramatically, increasing by 26% year over year.

In terms of dollars, professional and agricultural risk losses have risen by 70.9 percent in a year, from 5.5 billion EUR in 2019 to 9.4 billion USD in 2020. Claims for business interruption and cancellation risks account for the majority of the increase.

France's combined ratios for property and casualty insurance.

For the period 2010-2019 (1), the combined ratio varies between a high of 98 percent in 2010 and a low of 93 percent in 2011. The 2020 ratio, which has yet to be published by the French Insurance Federation, is expected to reach 98 percent as a result of the health crisis and the deterioration of the socio-economic climate, implying a return to the 2010 level.

Property and casualty insurance in France has evolved throughout time (2010-2020)

France's combined ratio by line of business for property and casualty insurance

With the exception of natural disasters, the automotive class of company has the highest combined ratios, peaking at 105.7 percent in 2016 and 105.4 percent in 2010, with peaks of 105.7 percent in 2016 and 105.4 percent in 2010. The motor combined ratio has plummeted to 96.1 percent in 2020, the lowest of all business classes, due to lockout and traffic limitations.

Natural disasters demonstrate a wide range of combined ratios. Rate amplitudes in this industry are particularly high from year to year, with a peak of 201 percent in 2017 and a rate of 57 percent in 2013.

At the same time, the combined ratio of professional and agricultural property insurance is deteriorating. From 84 percent, which was the lowest level reported in the year,


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