...Strong Competition and Adverse Claims Experience Weigh on Growth and Margins The sector outlook for the French non-life insurance market is negative as Fitch Ratings expects that premium growth and profitability of French non-life insurers will deteriorate in 2016. Fitch forecasts a normalised combined ratio of 102% in 2015 and 103% in 2016 and growth in non-life premium income of 2.6% in 2015 and 1.6% in 2016. Competition in both personal and commercial lines is intense and the rise of aggregators on the internet, supported by regulatory changes that enable policyholders to cancel policies beyond the anniversary date (Hamon Law), are likely to squeeze margins and add to pricing pressure. Commercial lines are profitable in France, which attracts capacity and is intensifying competition. Underwriting profitability is under pressure in motor as claims frequency and average claim severity are rising, particularly for bodily injury claims. Fitch believes that lower tariff increases, stiff competition...
