The automobile insurance market - France (2024)

1.2 The global motor insurance market

The size of the global automotive market has increased in recent years. In ****, this market was estimated at $***.** billion. It should continue to develop positively over the next few years, at a compound annual growth rate of *. *% (***). These data enable us to estimate the size of the market over the following years:

Evolution of global insurance market size World, ****-****, in billions of dollars Source: ****

The global motor insurance market is therefore expected to reach sales of $****.** billion by ****.

Breakdown of insurance premiums written by region World, ****, % (***) Source: ****

North America dominates the market with a **.*% share, followed byWestern Europe with **.*%.Asia, with **. *% excluding Japan and China, demonstrates a significant share of worldwide insurance premiums written (***).

China and Japan account for **.*% and *% respectively of insurance premiums written. Finally, the rest of the world contributes *.*%, indicating geographical diversity in the distribution of insurance premiums.

This breakdown underlines the importance of considering regional specificities when analyzing the global insurance market, as well as the differentiated growth opportunities in each region.

Breakdown of property & casualty premium growth by region World,****, % (***) Source: Allianz P&C premiums include both home and motor insurance. North America also has the highest number of P&C premiums, with a share ...

1.3 Positive trends in the national motor insurance market

Growth in the number of cars insured France, ****-****, in millions of vehicles Source: ****

The graph above illustrates an upward trend in the number of cars insured in France from **** to ****. Indeed, a *% increase in the number of insured vehicles is observed over this period

This steady increase indicates stable growth in the motor insurance market over this period.

Evolution of motor insurance premiums France, ****-****, in millions of euros Source : France Assureurs The insurance premium represents the regular payment that the policyholder makes to his insurer to benefit from protection in the event of an accident or claim covered by the insurance contract. It applies to all policyholders, whether individuals, professionals or farmers, and to a variety of insurance contracts, including those designed to protect the home, family, professional activity, vehicles or crops. The insured can choose the payment frequency: annual, half-yearly, quarterly or monthly

We can see a steady growth in these contributions over this period, rising from **.*** million euros in **** to **.*** million euros in ****, an increase of **%.

This upward trend suggests an overall increase in sales generated by the motor insurance sector over these years.

2.1 Typology of demand

in ****, **.*% of French households owned at least one car.

Number of cars per household France, ****, % Source: sécurité-routière.gouv.fr The majority of households, **%, own just one car, while **% have two cars. A smaller proportion of households, *%, have three or more cars. This distribution highlights the diversity of car configurations within French households. One-car households may be characterized by more moderate car use, or by financial constraints limiting the number of vehicles owned. On the other hand, households with two or more cars often reflect a greater need for mobility, with several family members probably needing to travel independently. Breakdown of driving habits of French drivers by age group France, ****, %, %, % Source: ****

The graph above underlines the fact that most license holders, regardless of age group, drive regularly.

However, the older age groups, notably **-** and**+, show a significant decrease in the proportion of regular drivers (***).

These data reflect natural variations in driving habits according to age, underlining the importance of taking these differences into account when designing car insurance.

The two graphs above demonstrate the importance of car use by the French. They therefore need to insure their vehicle(***) in order to comply with French law.

Main criteria for ...

2.2 Annual new car registrations down in recent years

The downward trend in annual new car registrations observed over the last few years reflects a change in the purchasing habits of French consumers. Increasingly attracted by the second-hand market, motorists are opting for vehicles already on the road, motivated by economic and environmental considerations and an increasingly diversified range.

This development has a direct impact on the motor insurance sector, prompting insurers to rethink their strategies to meet the changing needs of used car owners.

Trend in annual registrations of new passenger cars France, ****-****, in millions of cars Source: ****

In France, over the period from **** to ****, the trend in annual registrations of new passenger cars shows significant variations. Between **** and ****, the number of new vehicle registrations fell by **.**%.

After an upward trend between **** and ****, with a peak reached in **** at *.*** million cars registered, the market saw a marked decline in ****, with only *.*** million new cars registered .

This decline can be attributed to various factors, such as the economic impact of the COVID-** pandemic and the resulting uncertainties. Despite a slight recovery in **** and ****, the level of registrations remains below the figures observed before the pandemic. However, an increase of **.**% was recorded between **** and ****, with *.*** million new cars registered, suggesting ...

2.3 Increasing demand for electric and hybrid car insurance

In recent years, the French have shown growing interest in electric and hybrid vehicles. This significant shift in consumer choice can be explained by a growing awareness of environmental issues and a desire to reduce carbon footprints. The benefits associated with these vehicles, such assavings on fuel costs and government incentives for purchase, have also contributed to their growing popularity. This trend has naturally had an impact on the car insurance market.

Trend in insurance quotes for electric and hybrid vehicles vs. N-* France, ****, % Source: ****

In ****, there was a clear increase in insurance quotes for electric and hybrid vehicles compared with the previous year.

For electric vehicles, this increase is particularly marked, with a rise of **% on the previous year, while for hybrid vehicles, the increase is also significant, reaching **%.

This trend reflects growing consumer interest in electric and hybrid vehicles, probably driven by growing environmental concerns, as well as government incentives for the adoption of cleaner vehicles. These data point to a favorable evolution in the motor insurance market, with increased demand for insurance products adapted to new types of vehicle.

Average annual insurance premiums by vehicle type France, ****, in € Source : Le baromètre auto **** LesFurets via Linkedin In France ...

2.4 Inflation weighs on demand for motor insurance: a growing phenomenon of roadside uninsurance

By ****, around a third of French people would be prepared to forego home or car insurance in order to save money. Inflation is reducing the purchasing power of French households, prompting them to look for ways to save money. Some are considering cutting back on insurance. Christophe Dandois, CEO and co-founder of Leocare, points out that insurance is a fixed monthly expense that only pays off in the event of a claim, unlike other consumer goods. [***]

Percentage of French people ready to give up their home or car insurance France, ****, % [L'argus de l'assurance Source: ****

Faced with rising rates, some consumers are considering giving up their insurance to save money. For example, **% of those in the upper socio-professional categories (***) surveyed are ready to give up their car or home insurance.

However, this represents a considerable risk, given the high cost of a claim, particularly in the case of car insurance for an uninsured driver. Despite this, **% of French car owners are considering cancelling their car insurance, a figure that has risen by * point compared to ****. The study also reveals regional disparities, with a rate of **% among drivers in the Paris region, compared with **% in the north and **% in the south. [***]

Share of ...

3.1 Automobile insurance value chain

Source: ****

Once the policyholder has taken out an automobile insurance contract with the insurer, he or she must pay premiums (***) to be covered by the insurance.

In the event of a claim, a number of steps are taken before the insured is compensated:

Damage assessment: This stage involves evaluating the damage sustained by the insured vehicle following a claim. An insurance adjuster or approved repairer inspects the vehicle to estimate the cost of repairing or replacing damaged parts.

Statement of loss : Once the damage has been assessed, a loss statement is drawn up. This is a document detailing the damage sustained by the vehicle, the circumstances of the loss and relevant information on the parties involved. It serves as the basis for the rest of the claims management process.

Pointing and costing: At this stage, the assessed damage is costed. Necessary repairs are detailed, and their cost is estimated on the basis of current rates for labor and spare parts. This stage can be carried out by the insurance adjuster or the approved repairer.

Negotiation of compensation: Once the damage has been assessed and quantified, the insurance company negotiates with the vehicle owner or his representative (***) to determine the amount of ...

3.2 Number of companies and number of employees

there is no APE code issued by Insee that focuses solely on motor insurance, however, it may be interesting to study the data in APE code ****Z-Other insurance. This code covers all insurance services other than life insurance:

accident and fire insurance health insurance travel insurance property insurance automobile, marine, aviation and transportationinsurance financial loss and liability insurance

Growth in the number of establishments registered under "****Z" activity France, ****-****, in number of establishments Source: ****

Between **** and ****, the number of establishments registered under "other insurance" fell by **.*%

This steady decline in the number of establishments could be the result of changing consumer habits, such as the growing adoption of online platforms for insurance services, reducing the need for physical establishments. This trend could indicate structural changes in the insurance industry that are influencing the number of companies operating in the sector.

Trend in the number of employees registered in activity ****Z "Other insurance" France, ****-****, in number of employees The graph above shows a steady upward trend in the number of employees registered under Other insurance between **** and ****. The number of employees in this market increased by *% over this period. This increase reflects a continued expansion of the insurance industry, suggesting ...

3.3 Motor insurance distribution

Motor insurance market share by distribution channel France, ****, % (***) Source: ****

The breakdown of motor insurance market share by distribution channel shows a predominance of companies with intermediaries (***), which hold a significant **.*% share. Mutual insurers without intermediaries also occupy a significant share, with **.*%, testifying to their solid market position.

Bancassurances account for a market share of **.*%, indicating their significant presence in motor insurance distribution. Finally, other companies without intermediaries, although less important, also contribute to the competitive landscape with a share of *.*%.

This breakdown highlights the diversity of distribution channels used by insurers to reach consumers, with different business models tailored to their needs and preferences.

The different players :

3.4 The automobile insurance market: a concentrated and competitive market with the development of neo-insurers

Sales of the top ** property and liability insurers France, ****, in millions of euros and as a % of total sales Source: Argus de l'assurance Covéa (***) is the market leader, with sales of *.*** million euros in ****. Axa and Groupama follow close behind, with sales of *.*** million and *.*** million euros respectively.

Sales growth compared with the previous year varies from company to company, ranging from -*.**% for Covéa to **.**% for Aéma Groupe.

These data reveal some interesting trends in the French insurance market, notably the remarkable growth of Aéma Groupe and Maif, and the stability of Covéa despite a slight drop in sales.

The strong growth of the Améa Group could be partly explained by the acquisition ofAbeille assurances (***) in September **** .

Market share of the top ** property and liability insurers (***) France, ****, % (***) Source: ****

As in the previous chart, Covéa, Axa and Groupama top the ranking.

The chart above illustrates just how concentrated the market is, with the top * companies holding over half the market share(***).

This concentration can have major implications for the competitive dynamics of the market, with dominant companies often having greater power to influence rates, policies and market trends. For insurers with smaller market shares, ...

4.1 Classic car insurance packages

In general, insurance companies offer their customers * different types of motor insurance: third-party motor insurance, intermediate motor insurance andcomprehensive motor insurance.

In addition to compulsory cover, there are several optional extras in motor insurance, although their availability varies from one insurer to another. These include breakdown cover, which pays for repairs in the event of a mechanical breakdown. Replacement value auto cover provides reimbursement based on the vehicle's current value in the event of total loss, without depreciation. * km assistance guarantees help in the event of breakdown or accident, even close to home. Finally,the vehicle contents guarantee covers personal items inside the vehicle in the event of theft or damage.

The most popular formulas France, ****, % Source: ****

In ****, the most popular type of motor insurance was comprehensive, accounting for **% of policies, followed by third-party at **%, and third-party with theft/fire at **%.

This distribution suggests a marked preference for more extensive cover, as demonstrated by the high take-up rate for comprehensive cover. However, third-party coverage also remains significant, indicating a tendency to opt for more economical options.

4.2 The emergence of specific motor insurance offers

In the dynamic landscape of motor insurance, the emergence of specific offers reflects a growing trend towards tailoring insurance solutions to drivers' needs. Among these innovative offerings, pay-per-kilometer insurance and temporary car insurance stand out for their flexibility and ability to respond to motorists' changing requirements. These customized products offer an attractive alternative to traditional formulas, reflecting the constant evolution of the motor insurance sector to better serve its customers.

Per-kilometre insurance :

There are two types of mileage-based car insurance, each with its own particularities and implications for drivers.

To begin with, pay-as-you-drive insurance works on a simple principle: the car insurance premium is calculated each month according to the actual number of kilometers driven. While this option can save you a great deal of money, it does require you to be extra vigilant when it comes to vehicle use. Exceeding a certain monthly mileage may cancel out the benefits of this formula.

Your insurer can offer you precise mileage-based pricing by installing an electronic box in your vehicle. This device will regularly transmit the vehicle's mileage to the insurer, who will adjust the premium according to the distance actually covered.

The second option, and probably the most widespread, is the ...

4.3 Car insurance prices

Change in consumer price index for motor insurance France, ****, index base *** **** Source: ****

Between January **** and January ****, the consumer price index for motor insurancerose by more than * points.

In recent years, the CPI has fluctuated significantly, reaching its highest peak in January ****. This evolution suggests a certain volatility in the cost of car insurance over this period, with variations potentially influenced by various factors such as claims, regulatory reforms or insurance company rate adjustments.

The increase in motor insurance premiums is closely linked to the rise in the number of claims, particularly those resulting from frequent climatic events. In addition, repair costs have climbed due to the rising price of certain spare parts and the scarcity of other components on the automotive market. At the same time, labor costs for automotive repairs are on the rise, mainly due to a shortage of skilled workers.

Overall, this analysis reveals an upward trend in costs over time, although this progression is not linear and may be subject to temporary fluctuations.

Average annual rates by motor insurance formula France, ****, in euros Source: Baromètre auto **** LesFurets via Linkedin All-risk insurance has the highest average price, at *,*** euros per year, reflecting more extensive coverage and more ...

5.1 The regulatory framework for motor insurance in France

Since ****, the law has required all owners of "land-based motor vehicles intended for use on public roads" to take out compulsory motor insurance.

This obligation is set out in article L***.* of the Highway Code and article L***.* of the Insurance Code. These articles stipulate that anyone who may be held liable for damage caused to third parties through the use of a vehicle must be covered by third-party insurance in order to be able to drive.

In other words, all drivers are required to carry insurance . At the very least, this motor insurance must include coverage for third parties involved in an accident for which you are at fault. This minimum coverage is called civil liability, and it covers bodily injury and property damage caused to other drivers.

5.2 The Hamon consumer law

The Hamon law has profoundly transformed the car insurance landscape by allowing policyholders to terminate their contract at the end of the first year of commitment. This measure aims to offer consumers greater flexibility by simplifying the procedures involved in changing insurance.

In force since January *, ****, the Consumer Law, also known as the Hamon Law, authorizes all French people to cancel their car insurance at any time after one year's commitment. Its aim is to make the insurance market more fluid by freeing consumers from tacit renewal.

Thanks to this law, policyholders can easily change their car insurance policy by taking out a new contract with another insurer. The new insurer takes care of the cancellation formalities within one month, and guarantees continuity of cover between the two contracts.

The Hamon law applies to various types of insurance contracts, including car insurance, motorcycle insurance, multi-risk home insurance and supplementary health insurance. From now on, cancelling a car insurance contract under the Hamon law is a quick and easy procedure for policyholders, since insurers take charge of this step.

5.3 Removal of the green card

On December *, ****, the decree abolishing the automobile "green card" was published in the Journal Officiel, marking a step forward in simplifying administrative life for the French. from April *, ****, motorists and drivers of motorized two-wheelers will no longer be required to affix the insurance sticker to their vehicle, nor to physically carry the green insurance card on board.

From now on, proof of insurance will be established by consulting the Fichier des Véhicules Assurés (***), which lists all third-party motor insurance contracts in France. This file will be accessible to the police during checks. This measure also aims to reduce the ecological footprint, with an estimated *,*** tonnes of CO* saved per year by eliminating the printing and mailing of green cards. [***]

6.1 Player segmentation

• Axa groupe
• Acheel
• Flitter
• Lyanne
• Covea
• Groupama (France)
• Aesio Mutuelle (Aéma groupe)
• Allianz
• Maif France
• CNP Assurances (La Poste)
• Assurances du Crédit Mutuel
• Crédit Agricole Assurances
• Leocare
• Direct Assurance
• Adenes Groupe