France’s top ten insurers overwhelmingly depend on the life insurance sector for their premiums, generating 84% of their business from this area. This leaves them exposed to high claims as a result of the COVID-19 pandemic, according to GlobalData, a leading data and analytics company.
GlobalData analyst, Ben Carey-Evans, commented: “Of the top ten insurers in France, four generate premiums exclusively through life insurance, while only one, AXA France lard, is exclusively non-life. Allianz lard is also majority non-life, with 70.6%, and the other eight are very much concentrated on the life market.
“Furthermore, four of the top ten have a 100% dependence on life insurance. These four appear the most susceptible. AXA France Vie has the largest non-life share of the leading eight insurers, by a considerable amount, which gives it a strong platform to challenge the countries’ leading insurer, Predica.”
GlobalData shows that the top ten life insurers in France have a strong hold of the market, as they account for 74%. The leading life provider in the country, Predica, holds 15.6% of the life market.
Carey-Evans continues: “The leading players in the life market, and almost all of the top ten insurers in the country, appear susceptible to a potential rise in claims, as well as volatility in investment returns in the life insurance business. Leading players in the non-life sector such as AXA France Vie are still vulnerable to a rise in claims. Especially in business interruption and financial lines, though personal home and motor insurers should see claims decline during lockdown.”