Life insurance - France

France

The Life insurance market market in France is expected to reach a projected market size (gross written premium) of €147.50bn in 2024.
The average spending per capita in the Life insurance market market is estimated to amount to €2.27k in 2024.
It is projected that the gross written premium will experience an annual growth rate (CAGR 2024-2029) of -1.15%, resulting in a market volume of €139.20bn by 2029.
In comparison to other countries, the United States is anticipated to generate the highest gross written premium in the Life insurance market market, amounting to €1,195.0bn in 2024.
France's life insurance market is experiencing a surge in demand due to its robust regulatory framework and strong consumer trust in insurance companies.

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Analyst Opinion

Over the past few years, the Life insurance market in France has been experiencing significant growth and transformation.

Customer preferences: Customers in France have shown a growing interest in life insurance products that offer not only financial security but also investment opportunities. This shift in preference towards investment-linked insurance products can be attributed to the low-interest-rate environment, where traditional savings accounts may not offer attractive returns.

Trends in the market: One notable trend in the French life insurance market is the increasing demand for unit-linked and hybrid insurance products. These products provide policyholders with the flexibility to choose investment options based on their risk appetite, offering the potential for higher returns compared to traditional savings-oriented policies. Additionally, there has been a rise in demand for sustainable and socially responsible insurance products, reflecting a growing awareness of environmental and social issues among consumers.

Local special circumstances: In France, the regulatory environment plays a significant role in shaping the life insurance market. The introduction of new regulations, such as the implementation of Solvency II framework, has led insurers to enhance their risk management practices and improve transparency for policyholders. Moreover, the tax benefits associated with life insurance policies in France have contributed to their popularity as a long-term savings and investment tool.

Underlying macroeconomic factors: The evolving macroeconomic landscape in France, characterized by low-interest rates and market volatility, has influenced the development of the life insurance market. Insurers have been adapting their product offerings to cater to changing customer needs and market conditions, such as introducing innovative investment strategies and digital solutions to enhance customer experience. Additionally, demographic factors, such as an aging population and increasing life expectancy, have driven the demand for retirement-focused insurance products in the French market.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.