Yesterday, Wednesday March 24, the insurance sector presented its state of affairs for the year 2020. And, contrary to what some observers have suggested, the past financial year has not been so profitable for companies. insurers, according to the French Insurance Federation (FFA).
2020: year of spending or savings?
Admittedly, the latter have made substantial savings due to the drop in claims related to travel restrictions and various confinements. At the end of the first, which began a year ago, auto and home insurers had thus been able to set aside 2 billion euros thanks to the drop in claims (fewer car accidents, breakdowns, but also burglaries, etc.)
But what insurers saved on the contracts of individuals, who stayed at home, they spent on compensate professionals, who have been hit hard by the crisis. The branches dedicated to the coverage of companies and professionals, to health and to provident insurance, have seen their expenses soar.
According to the FFA, claims compensation for these professional insurance products increased by nearly 3 billion euros over last year. This contrast between personal insurance and professional insurance can be seen, for example, in damage insurance.
The activity of this branch increased by 3% for individuals, but it fell by 1% for companies: the former, forced to stay at home, have more covered their goods, while the latter, forced to the stop, had less goods to insure.
COMPARE AUTO INSURANCE
–
Cover professionals affected by the crisis
In addition, insurers have also had to compensate companies to cover their operating losses. The subject continues to be debated, since many professionals, who consider themselves indeed covered for the pandemic risk, are still engaged in legal proceedings to obtain the payment of these indemnities. However, according to the FFA, the sector has seen an increase in compensation paid as a result of these contracts, intended to cover the losses of professionals.
Coming back to individuals, spending has also increased on the side of health insurance, always according to the FFA. This data may appear counter-intuitive, since many French people have postponed their care, especially among specialists, due to travel bans. But the compensations of the complementary have nevertheless increased by more than 4%, to 19.8 billion euros.
In addition, other events unrelated to Covid-19 also weighed on the accounts of insurers last year. The FFA highlights “The constant increase in damage caused by climatic disasters observed for several years”, in particular droughts, which have cost more than 3 billion euros last year.
A sector also symbolically affected
This inventory therefore sends a clear message: the insurance sector has not escaped the crisis, by covering those who also suffered it, and without counting other events and disasters unrelated to the pandemic.
According to the FFA, the high loss experience in 2020 therefore had a significant impact on the solvency of the sector. But the insurance also lost symbolically. Its ability to anticipate the crisis and then deal with it once there has been questioned by many.
Finally, another of the « totems » French savings, life insurance, is also in a difficult phase. In times of economic uncertainty, savers are turning to products that allow them to keep their capital within reach.
As a result, life insurance has experienced eight months of net outflow, i.e. “Deficit”. In total, this savings product designated as “The favorite of the French” lost 6.5 billion euros Last year. But fundraising started to rise again at the start of the year.
–
Save up to 40% on your auto insurance
Thanks to Assurland.com, compare your personal insurance for free in a few minutes to be protected at the best price!
COMPARE AUTO INSURANCE
–
–
