Boston, MA -- (SBWIRE) -- 07/27/2012 -- The French life insurance segment is the second largest in Europe in terms of gross written premium, after the UK. Despite the fact that life insurance is one of the preferred types of investments among French consumers, the segment recorded a poor performance during the review period. The recent sovereign debt crisis adversely affected the life insurance segment, as it created a poor investment environment in the country that made French consumers reluctant to make investments in life insurance products. French life insurance companies are finding it difficult to maintain profit margins due the increasing level of price competition in the segment. Life insurance companies are expected to undertake some restructuring initiatives in order to reduce their operational costs to sustain the price competition. To reduce the administrative costs, leading companies are relocating their back office operations to low-cost destinations.
- Pension products were the leading life insurance product category in France during the review period. The majority of French consumers purchase life insurance policies for their retirement and long-term care. Similar to several other Western European countries, France is currently recording an aging population, a shrinking workforce and an increasing pension deficit.
- French life insurance companies are finding it difficult to maintain profit margins due to the increasing level of price competition in the segment. Life insurance companies are expected to undertake some restructuring initiatives in order to reduce their operational costs to sustain the price competition.
- The increasing penetration of distribution channels across the country is expected to drive the growth of the French life insurance segment over the forecast period. The expansion of distribution networks enables the insurance companies to reach out to a larger customer base and increase the volume of their life insurance policy sales.
- The ongoing debt crisis caused French consumers to seek low-cost life insurance products with higher coverage. As such, life insurance companies are now facing tough competition over prices.
- The French life insurance segment is expected to remain competitive over the forecast period due to the country's favorable regulations that allow foreign companies to enter the French insurance industry by establishing a new subsidiary or acquiring an existing company in the region.
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This report provides a comprehensive analysis of the life insurance market in France:
- It provides historical values for the French life insurance market for the report's 2007-2011 review period and forecast figures for the 2012-2016 forecast period
- It offers a detailed analysis of the key sub-segments in the French life insurance market, along with market forecasts until 2016
Companies Mentioned in this Report: CNP Assurances, Credit Agricole Assurances, BNP Paribas Cardif, Groupe Des Assurances Du Credit Mutuel, AXA France, Generali France, Societe Generale Insurance, Allianz France, Aviva France, Groupama France
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