AM Best is maintaining its negative market segment outlook on France’s life insurance segment.

In its new Best’s Market Segment Report, “Market Segment Outlook: France Life Insurance,” AM Best states that it expects the country’s life insurance premium growth to remain constrained in 2024 as the segment’s top line is sensitive to wider economic conditions.

Although life insurance products remain one of the preferred investment options in France, AM Best believes the combined effect of slow economic recovery, and competition from other investment products offering higher rates, weighs on the segment’s growth prospects over the next 12 months.

Meanwhile, the announcement by life insurers of higher crediting rates on fixed saving products in 2024 (for the 2023 policy year) is seen as a positive factor for the segment. Over the longer term, the segment is expected to benefit from higher margins as insurers’ own portfolio returns are expected to gradually increase thanks to higher yields on recent investments.

To access a complimentary copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=343043.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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