France Insurance Market Trends & 2017 Opportunities: Life, Non-Life and Reinsurance Industry Analysis
“France has made a huge effort to restore its public finances, and this draft budget law is characterised by responsibility and prudent policy making,” Olli Rehn, the EU’s economic and monetary affairs commissioner told a joint news conference with Moscovici, waving a copy of the French budget. Rehn made no mention of Hollande’s pension reform plans, which do not raise the country’s retirement age as the Commission has demanded. Germany also wants to see the euro zone’s second largest economy address overspending. Brussels says Paris is not taking radical enough action to combat rising labour costs, a falling share of international export markets and an industrial decline, threatening a shock to its economy that would resonate through the 17-nation euro zone. France’s economic well-being is central to the health of the currency area, but the country’s pride in its status as a leading member of the European Union means it resists taking advice from EU institutions. The pension reform, among the most closely watched measures undertaken by Hollande since he took office in May 2012, aims to fill a hole in the pension system that could reach almost 21 billion euros ($28 billion) by 2020. Though Hollande’s reform will lengthen the number of years worked, it does not change the legal retirement age of 62 years for a full pension, which is one of the lowest in Europe. “NO CONSTRAINTS” In the shadow of the pension reform, Moscovici presented France’s 2014 budget to parliament on Wednesday. He plans 15 billion euros in savings to reach a deficit of 3.6 percent of economic output, which should allow Paris to bring the budget deficit to below the EU’s 3 percent ceiling in 2015. Under EU rules, sharpened at the peak of the debt crisis in late 2011, euro zone countries can face fines if they fail to meet deficit targets and risk damaging investor confidence. Moscovici was also keen to convince Rehn, who has new powers to check countries’ budgets, that France’s planned budget savings and economic forecasts are in line with its commitments. He also sought to play down any suggestion that France would not respect the Commission’s new monitoring powers. “Europe does not pose a constraint. Europe is not a problem. In France, Europe is a solution,” Moscovici said.
UPDATE 2-EU and France play down tensions over reforms
France Insurance Market Trends & 2017 Opportunities: Life, Non-Life and Reinsurance Industry Analysis Reinsurance, Life & Non-Life Insurance in France, Key Trends and Opportunities to 2017 market research reports are now available with RnRMarketResearch.com. Press Release: RnR Market Research 56 minutes ago Print DALLAS, Sept. 27, 2013 /PRNewswire-iReach/ — The French life insurance segment accounted for 65.5% of the industry’s gross written premium in 2012. During the review period, turbulent financial and economic conditions adversely affected the segment’s performance. The segment posted a CAGR of 0.9%, with gross written premium expanding from EUR122.4 billion (US$180.0 billion) in 2008 to EUR127.0 billion (US$163.4 billion) in 2012. The segment’s penetration rate remained stable at 6.3% in 2012. Pension products were the leading French review-period life insurance product category. Pension policies accounted for 82.3% of the segment’s premiums in 2012. Bancassurance dominated the life insurance distribution network. The channel accounted for an average share of 60.6% of the total review-period life insurance commission paid. Complete report Life Insurance in France, Key Trends and Opportunities to 2017 is available at http://www.rnrmarketresearch.com/life-insurance-in-france-key-trends-and-opportunities-to-2017-market-report.html . (Photo: http://photos.prnewswire.com/prnh/20130927/MN87823 ) France has a large and well-developed domestic reinsurance segment, with the reinsurance premium valued at EUR16.4 billion (US$21.0 billion) in 2012. There were 19 reinsurers operating in France at the end of 2011. International reinsurers such as Munich Re, Swiss Re and Berkshire Hathaway dominated the segment. Despite slow growth in the insurance industry, the reinsurance segment increased at a review-period CAGR of 4.9%.