Insurance market contracts following fall in life policy sales

A shift in interest rates left the three-month rate higher than the 10-year and households favoured cash savings over insurance

The total French primary insurance market contracted by 1.2% last year, according to figures published by the French insurers’ association Federation Francaise des Societes d’Assurances (FFSA). Premium income in 2006 was € 195bn ($287bn).