Changing the structure of natural catastrophe cover

In 2007, France ranked fifth in the world and third in Europe in terms of non-life premium income, behind the USA, the UK, Japan, and Germany. In recent years, there have been a number of important developments in the market. For example, the French postal service was allowed to distribute non-life insurance products from January 2009, after the expiry of a ban which had lasted for several years. The post office is now expected to become a significant force in the distribution of mass market insurance products such as household and motor. The French government has also proposed modifying the natural catastrophe insurance scheme so that more of the risk is borne by the insurance sector. This change would be far-reaching and contentious, both because of allegations that flood plains have been unwisely used for construction and because of the difficulties in dealing with the subsidence risk

At the end of 2007 the number of insurance companies authorised in France was 461, down from 504 at the end of 2001, with a further 939 licensed to operate under freedom of services regulations.