The next decade conceals many challenges

According to a study by the firm Accenture, the decade, which has just ended, is the most prolific for French insurers in terms of growth and profitability. The market growth has been three times as high as that of the GDP, while Return On Equity (ROE) reached 11%. The annual growth rate over the next decade would be 2.3% in non-life insurance, compared to 4.6% in health and employees benefit and 3.9% in life. Profitability should stabilize at 7.5%, partly affected by the fallout of Solvency II.

Uncertainties surrounding the performances of the economy, climate change, regulatory developments and the new consumption pattern will strain the insurers' accounts. The firm has introduced four scenarios of market evolution, where investments in new technologies, optimization of risk management and product distribution are paramount.