BANKING & INSURANCE

INSURANCE IN FRANCE
Under the guidance of Ms. Surbhi Gandhi

SY B.Com (Hons)- C

Group 5
Anandita Jain- 03
Aryan Chadda- 07
Riya Gupta- 32
Sarvesh Giria- 36
Shreya Gupta- 38

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 PREFACE

This report has been created as a part of our project for the subject, Banking & Insurance. It is
prepared to include all the details of the project carried out by us. The initial portion of the
project contains an overview of insurance system in India and France. Later, we have compared
three products of Insurance in India with the same products available in France. This is
followed by the conclusion about the project.

ACKNOWLEDGEMENT

“It is not possible to prepare a project report without the assistance and encouragement of other
people. This one is clearly no exception.”
On the very outset of this report, we extend our sincere and heartfelt thankfulness towards our
Banking & Insurance professor, Ms. Surbhi Gandhi for conscientious guidance and
encouragement to complete this project. We also extend our gratitude to ANIL SURENDRA
MODI SCHOOL OF COMMERCE, NMIMS for giving us this opportunity.

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 Table of Contents

Sr. No. Content Page No.

1 Name of the Regulator & Total Number of Insurance Companies 04
2 Types of Insurance Companies 05
3 Total Insurance Coverage as Compared to India 06
4 Central Scheme of Insurance 09
5 Private Insurance- Market Share 11
6 Most Popular Product 13
7 Solvency Ratio 16
8 Online Sales, Offline Sales & Agency Sales 18
9 Unique Product in France which isn’t In India 24
10 Conclusion 25
11 References 26

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 NAME OF THE REGULATOR AND TOTAL NUMBER OF
INSURANCE COMPANIES

INDIA:
Insurance Regulatory and Development Authority of India (IRDAI), is a statutory body formed
under an Act of Parliament, i.e., Insurance Regulatory and Development Authority Act, 1999
(IRDAI Act 1999) for overall supervision and development of the Insurance sector in India.

The insurance industry of India has 57 insurance companies 24 are in the life insurance
business, while 34 are non-life insurers. Among the life insurers, Life Insurance Corporation
(LIC) is the sole public sector company. There are six public sector insurers in the non-life
insurance segment. In addition to these, there is a sole national re-insurer, namely General
Insurance Corporation of India (GIC Re).

FRANCE:
The French supervisory authority ensures a permanent supervision of all undertakings of the
insurance sector by controlling the respect of the current laws and regulations. At the end of
2019, there were a total of 3,906 insurance companies in Europe, with 868 located in France,
making the country the first market across the continent. There were 741 domestic branches,
while the rest was from the European Economic Area (EEA) or third-country branches.

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 TYPES OF INSURANCE COMPANIES
The types of insurance companies are as follows:
1. Standard Lines: This is an insurance company that has a license to operate and sell specific
lines of insurance in a particular state. Their premium rates policy forms are filed with the
state as they are regulated by the state insurance department.

2. Surplus Lines: A surplus lines insurance company is another name for an excess lines
insurance firm. These firms primarily ensure specialised risks such as high-risk vehicle
insurance or high-risk persons who, because to underwriting guidelines or limits, would
not be eligible for coverage by a standard lines insurer. A motorist with a history of
speeding tickets or other traffic offences, or a new business with no past coverage, are both
examples.

3. Captive Insurance Companies: A captive insurance company is one that typically insures
the risks of a specific industry or group of individuals or a specific type of risk such as
shipping (transit insurance) and fleet insurance. For example, if a shipping business could
not find affordable coverage through the standard insurance market, it may form a company
to provide insurance for itself. The company created to provide the insurance is a “captive”
of the parent company.

4. Domestic Insurance Companies: A domestic insurance company operates and is licensed

in the state where it is domiciled. The company can be licensed to operate in other states
but is considered an alien carrier in those states.

5. Alien insurance company: The alien insurance company is incorporated on laws of another
country. For example, an insurance company incorporated as a U.S. company but operating
in France would be considered an alien carrier by the perspective of France.

TYPES OF INSURANCE IN INDIA

1. Life insurance
2. Health insurance
3. Education insurance
4. Car insurance
5. Home insurance
TYPES OF INSURANCE IN FRANCE
1. La sécurité sociale (Social Health Insurance)

2. Le mutuelle de santé (Mutual Health Insurance)

3. L’assurance de responsabilité civile (Civil Liability Insurance)

4. L’assurance habitation (Home Insurance)

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 TOTAL INSURANCE COVERAGE AS COMPARED TO INDIA

INDIA:
In case of India, LIC, a public sector insurance company, is the oldest insurance company
of the country. It is renowned for maintaining the highest claim settlement ratio for more
than 3 consecutive years. LIC e-Term plan is a pure insurance policy, which means that
it offers Death Benefit only, i.e., the payment of the pre-determined sum assured to the
beneficiary on the policyholder’s death. If the policyholder survives through the LIC e -
Term plan tenure, the beneficiary shall not be paid anything as the Maturity Benefit.
LIC e-Term plan offers comprehensive coverages of varying amounts as per the
requirement of the proposer, as we will discuss later here. The minimum sum assured that
LIC e-Term plan offers is Rs.25 lakh for an aggregate category, while for a smoker it is
Rs.50 lakh. LIC e-Term plan is a basic online term plan, ensuring customers the
convenience and flexibility of purchasing it across geographical boundaries. This also
implies that you don’t need the services of LIC agents and intermediaries to enable you
to purchase the LIC e-Term plan. This regular premium paying non-participating online
term insurance plan assures your family of financial stability, even when you are not
around to provide for them.
All you need to do to be eligible for buying a LIC e-Term plan is hold an Indian
citizenship, belong to the age of bracket of a minimum of 18 years and a maximum of 60
years and should have a stable source of income. The LIC e-Term plan is also available
on a minimum policy term of 10 years and premium payment is applicable annually.
The policy covers the following:
1. Policy tenure applicable till the age of 75 years.
2. The policy will be lapsed if the premium is not paid within the grace period.
3. Policy can be renewed within 2 years from its lapse
4. If the insurance plan is returned during the FREE LOOK period, the premium paid will be
returned without charges being levied for expenses towards stamp duty.

FRANCE:
HSBC Bank in France provides life insurance, according to the terms of contract, In the case
of the Project version, the initial subscription payment must be at least €150 with the
implementation of scheduled payments, minimum €45 per month. Without setting up
scheduled payments, the minimum initial payment is €225. In the Generation version, the initial
payment at subscription must be at least equal to €5000. According to the conditions defined
in the contract information notice, degressive charges are applicable to additional payments
and scheduled payments for contracts with scheduled payments in progress. The amount of the
additional capital is limited to 50% of the net payments of costs, up to a maximum of €50,000.
This coverage is only available to you if the effective date of your membership is before your
70th birthday. The exercise of the full repurchase option, the occurrence of the term in the event
of death and the occurrence of your 75th birthday will terminate the guarantee. This coverage
is subject to exclusions.

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Further comparing France with India.

INDIA:
In case of motor insurance, the coverages provided by TATA AIG INSURANCE are:
3rd party liability only cover: Under this type of car insurance coverage, you will get the
following benefits:
• Cost of repairs/replacement of the damaged vehicle of third parties
• Cost of hospitalization and treatment of third parties
• Liabilities arising out of death of third parties

According to the Motor Vehicles Act, third-party car insurance coverage is a must to drive on
the roads. The sum assured should be according to the driving conditions and sufficiently high
to avoid out-of-pocket payments from your side.

1. Collision Damage or Own Damage (OD) Cover: When you opt for collision damage car
insurance coverage, the cost of repairs to your vehicle that has been damaged is reimbursed.
To determine the cost of collision coverage, its age and Insured Declared Value are taken into
account to arrive at the premium. The IDV is based on the market value of the vehicle. When
a claim is lodged under collision coverage policy, the maximum amount payable under the
policy is given by the IDV less accumulated depreciation. If you have purchased your vehicle
on a loan, you should hold collision cover.

2. Personal Accident Cover: When you wish to protect yourself, i.e., the owner-driver of the
car, by opting for reimbursement of medical expenses after an accident, you are using personal
accident car insurance coverage.

3. Zero Depreciation Insurance: This coverage is generally offered as an add-on to car

insurance policies in India. Suppose your vehicle is damaged and you need to replace the parts.
The insurer will consider the depreciated value of the parts for claim settlement. A Zero
Depreciation Cover will help you get the complete claim amount without accounting for any
depreciation in the costs.

4. Comprehensive Car Insurance: This type of coverage gives the highest level of protection
as it includes liability for third parties, damage to own vehicle, personal accident cover, and all
non-collision damage such as storms, floods, fire and theft. You can further enhance
a comprehensive car insurance policy with a choice of add-ons.

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FRANCE:
Where as in France, the coverage provided by motor insurance companies:

1.Third-party (au tiers or la garantie responsabilité civile):

This is the legal minimum insurance required for all vehicles in circulation in France and
essentially serves as a Civil Liability insurance. This means you will be covered in the event
that your vehicle is responsible for injuring another person, or damage to another car or
building. Your own car is not covered.

2.Third-party, Fire and Theft (au tiers illimité, formule Médianeor tiers complet):

Your vehicle is covered for damage or injury to a third party, as well as for theft, fire, and
sometimes other occurrences. These policies might also include elective breakdown coverage
or vehicle replacement services.

3.Fully Comprehensive Cover (tous risques)

You are covered both for damage and injury to yourself, a third party, and your vehicle,
including fire and theft. Comprehensive cover varies between policies, so be sure to check the
small print, and especially note any exclusions or elective inclusions.

It should go without saying that each insurer’s policy will be slightly different, so be sure you
fully understand what is and, more importantly, what isn’t included. Additional things to note
include the excess amount (the amount you pay before your insurance kicks in), whether or not
your No Claims Bonus will be taken into account (more about that in a moment), whether or
not breakdown assistance is available, and what the claims process is.

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 CENTRAL SCHEME OF INSURANCE

INDIA:
Ayushman Bharat, a flagship scheme of Government of India, was launched as recommended
by the National Health Policy 2017, to achieve the vision of Universal Health Coverage (UHC).
This initiative has been designed to meet Sustainable Development Goals (SDGs) and its
underlining commitment, which is to "leave no one behind. "This scheme aims to undertake
path breaking interventions to holistically address the healthcare system (covering prevention,
promotion and ambulatory care) at the primary, secondary and tertiary level.
The main scheme under Ayushman Bharat is the Pradhan Mantri Jan Arogya Yojana or PM-
JAY as it is popularly known. This scheme was launched on 23rd September, 2018 in Ranchi,
Jharkhand by the Hon’ble Prime Minister of India, Shri Narendra Modi.

Ayushman Bharat PM-JAY is the largest health assurance scheme in the world which aims at
providing a health cover of Rs. 5 lakhs per family per year for secondary and tertiary care
hospitalization to over 10.74 crores poor and vulnerable families (approximately 50 crore
beneficiaries) that form the bottom 40% of the Indian population. The households included are
based on the deprivation and occupational criteria of Socio-Economic Caste Census 2011
(SECC 2011) for rural and urban areas respectively. PM-JAY is fully funded by the
Government and cost of implementation is shared between the Central and State Governments.

Key Features of PM-JAY

• PM-JAY is the world’s largest health insurance/ assurance scheme fully financed by
the government.
• It provides a cover of Rs. 5 lakhs per family per year for secondary and tertiary care
hospitalization across public and private empanelled hospitals in India.
• It covers up to 3 days of pre-hospitalization and 15 days post-hospitalization expenses
such as diagnostics and medicines.
• There is no restriction on the family size, age or gender.
• All pre–existing conditions are covered from day one.
• Services include approximately 1,393 procedures covering all the costs related to
treatment, including but not limited to drugs, supplies, diagnostic services, physician's
fees, room charges, surgeon charges, OT and ICU charges etc.
Benefit Cover Under PM-JAY
PM-JAY provides cashless cover of up to INR5,00,000 to each eligible family per annum for
listed secondary and tertiary care conditions. The cover under the scheme includes all expenses
incurred on the following components of the treatment.

• Medical examination, treatment and consultation

• Pre-hospitalization
• Medicine and medical consumables

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 • Non-intensive and intensive care services
• Diagnostic and laboratory investigations
• Medical implantation services (where necessary)
• Accommodation benefits
• Complications arising during treatment
• Post-hospitalization follow-up care up to 15 days

FRANCE:
The French Universal Health Coverage is the French social security program concerning
health care, which was implemented in January 2000 It was drafted by Prime Minister Lionel
Jospin's leftist government in 1999.In compliance with this program, medical expenses are
reimbursed to all people who have been legally residing in France for over 3 months,
whereas illegal aliens are entitled to State medical aid.

France runs a statutory health insurance (SHI) system providing universal coverage for its
residents. The system is financed through employee and employer contributions, and
increasingly by earmarked taxes on a broad range of revenues. Enrolment in France’s statutory
health insurance system is mandatory. The system covers most costs for hospital, physician, and
long-term care, as well as prescription drugs; patients are responsible for coinsurance, co-
payments, and balance bills for physician charges that exceed covered fees.

The SHI scheme in which workers enrol is based upon the type of employment. Unemployed
persons are covered for one year after job termination by the SHI scheme of their employer and
then by the universal health coverage law. The state finances health services for undocumented
immigrants who have applied for residence. Visitors from elsewhere in the European Union (EU)
are covered by an EU insurance card.

Covered Benefits

• hospital care
• treatment in public or private rehabilitation or physiotherapy institutions
• outpatient care provided by general practitioners, specialists, dentists, physical therapists,
and midwives
• all maternity care services, from the 12th week of pregnancy through six months after
delivery
• new-born care and children’s preventive health care up to age 4
• diagnostic services prescribed by doctors and carried out by laboratories and paramedical
professionals
• prescription drugs
• medical appliances, including durable equipment such as wheelchairs and prostheses, that
have been approved for reimbursement
• prescribed health care–related transportation and home care.

SHI also partially covers long-term hospice and mental health care and provides minimal
coverage of vision care, hearing aids, and dental care. In general, there is limited coverage of
preventive care; however, there is full reimbursement for priority services — immunizations,
mammograms, and colorectal cancer screenings, for example — as well as for preventive care
for children and low-income populations.

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 PRIVATE INSURANCE - MARKET SHARE

INDIA:
India is experiencing a higher growth in the private health insurance sector, with more and
more private health insurers entering into the market to provide quality healthcare to a larger
section, with customized healthcare coverage. Indians are increasingly choosing private
hospitals over public, due to quality and sophisticated treatment. This serves as a major driver
for private insurers to enter into the market and make way for more comprehensive health
coverage.

Inflow of huge amount of funds, wide FDI, whose share has gone up from 26% to 49%,
recently, and other foreign investments encourage more private insurance companies to make
inroads to the health insurance industry in India. The market share of private sector companies
in the general and health insurance market increased from 47.97% in FY19 to 48.03% in FY20.
In the life insurance segment, private players held a market share of 33.78% in premium
underwritten services in FY20.

New India Assurance, Star Health and United India Insurance are the top three health insurance
companies in India according to gross premium collection in FY 2021, Star Health said in its
draft IPO prospectus citing a study done by CRISIL Research on its behalf. New India
Assurance has 18% share while Star Health and United India command 16% and 11% share
respectively. National Insurance and Oriental Insurance come in at fourth and fifth with 10%
and 8% holding in total health insurance premium.
Star Health is the only standalone health insurer (SAHI) in the top five list. The study shows
that Star Health has the highest market share in retail health insurance business. HDFC Ergo
General is a distant second with 10% share. The company collected Rs 2,724 crore as premium
in the previous financial year. New India Assurance, National Assurance and Oriental
Insurance are the other names in the top five. Aditya Birla Health registered the highest growth
at CAGR (Compound Annual Growth Rate) of 94% during the FY 2018-FY 2021 period. With
52% growth, SBI General occupied the second spot.

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FRANCE:
Publicly financed health coverage in France is universal. Nevertheless, in 2019, private health
insurance accounted for 13.3% of total spending on health (French Ministry of Health, 2020),
one of the highest shares internationally. According to the most recent survey data available,
95% of the population is covered by a complementary health insurance contract that primarily
reimburses statutory user charges. Nine out of ten people insured have a private contract while
the rest benefit from publicly funded complementary coverage known as Couverture maladie
universelle complémentaire (CMUC) due to their low income (Barlet, Beffy & Renaud, 2021;
based on the 2019 Health, health care and insurance survey).

Private health insurance complements the statutory scheme by covering statutory user charges.
Its size and significance have increased over time. In 1960, the market covered about 30% of
the population; this share grew to 50% in 1970, 70% in 1980 and reached 95% in 2013. France
is now one of the OECD countries where private health insurance is the most widespread. In
1960, private health insurance accounted for around 5% of total spending on health, rising to
12.1% in 2001 and 13.3% in 2015. The share of private insurance in the funding of different
types of health care varies, ranging from a low 3.8% for medical transportation and 5.2% for
hospital care to 21.7% for outpatient services and 39% for nonpharmaceutical medical goods

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 MOST POPULAR PRODUCT

INDIA:
In India, the overall market size of the insurance sector is expected to US$ 280 billion in 2020.
The life insurance industry is expected to increase at a CAGR of 5.3% between 2019 and 2023.
India’s insurance penetration was pegged at 4.2% in FY21, with life insurance penetration at
3.2% and non-life insurance penetration at 1.0%. In terms of insurance density, India’s overall
density stood at US$ 78 in FY21. In the first half of FY22, the life insurance industry recorded
growth rate of 5.8% compared with 0.8% in the same period last year. In September 2021, new
premiums of life insurers registered 22.2% growth in September 2021, up from 2.9% in
September 2020.

Between April 2021 and September 2021, gross premiums written off by non-life insurers
reached Rs.108,705.3 crore (US$ 14.47 billion), an increase of 12.8% over the same period in
FY21. In October 2021, total premium earned by the non-life insurance segment stood at
Rs.17,679.98 crore (US$ 2.38 billion), as compared to the Rs.15,906.71 crore (US$ 2.14 billion)
recorded in October 2020.The market share of private sector companies in the general and
health insurance market increased from 47.97% in FY19 to 48.03% in FY20. In the life
insurance segment, private players held a market share of 33.78% in premium underwritten
services in FY20.

In FY22*, premiums from new businesses of life insurance companies in India stood at US$
20.7 billion and renewable premium stood at US$ 53.7 billion. In July 2021, non-life insurance
premium stood at Rs.20,171 crore (US$ 2.71 billion), an increase of 19.5% YoY, as compared
with Rs.16,885 crore (US$ 2.26 billion) in July 2020.In July 2021, standalone private health
issuers registered a premium growth of Rs. 1,753 crore (US$ 235.11 million), an increase of
27.5% YoY. The gross direct premium income for the general insurance industry in India stood
at Rs. 1,087 billion (US$ 14.62 billion) in FY22 (until September 2021), an increase of 12.3%
YoY, due to 28.8% growth in the health segment and an 84.7% growth in the personal accident
segment.

Six standalone private sector health insurance companies registered a jump of 66.6% in their
gross premium at Rs 1,406.64 crore (US$ 191.84 million) in May 2021, as against Rs. 844.13
crore (US$ 115.12 million) earlier. In March 2021, health insurance companies in the non-life
insurance sector increased by 41%, driven by rising demand for health insurance products amid
COVID-19 surge. According to S&P Global Market Intelligence data, India is the second-
largest insurance technology market in Asia-Pacific, accounting for 35% of the US$ 3.66 billion
insurtech-focused venture investments made in the country

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FRANCE:
France is one of the world’s most developed insurance markets, ranking fifth globally and
second in Europe (behind only the UK). The French insurance sector brought in a revenue
of €293 million in 2017 and there are 285 insurance companies operating in the country. French
residents are legally required to take out a number of different insurances. In addition to this,
you can purchase various optional insurances too.

Insurance in France which is legally required:

Health insurance: All residents in France need to have health insurance coverage. As of 2016,
France’s Protection Universelle Malade (PUMA) has covered residents in the country. This
covers expats working in France from their first day, while other legal residents can access state
health insurance if they have lived in the country for three consecutive months on a ‘stable and
regular basis’. However, the scheme has its limits. Many expats and French citizens will,
therefore, take out top-up private insurance

Home insurance: Whether you rent or own your French home, you must have a home insurance
policy before moving in. Around 90% of home-owners in France have a multi-risk policy, but
you can also purchase separate coverage. Home insurance should cover:

Building insurance: Covers damage to the building caused by things such as fire, water
damage, natural damage, and vandalism. This is mandatory for renters and those with
a mortgage but not for those who own their home outright.

Public liability insurance: compulsory for all residents to cover their own responsibility for
damage to third parties and property. Tenants in rented accommodation will usually need this.
It’s possible to purchase this as part of a separate third-party liability insurance, but home
insurance packages often include it.

Contents insurance: Optional coverage for personal belongings but often available for a lower
premium when included as part of a multi-risk home insurance policy.

Construction insurance: It is mandatory to ensure major construction works carried out on

your property by a decennial cover called dommages ouvrage. This protects against defects in
the work carried out. Some multi-risk packages offer this. You can also purchase it separately.

Motor vehicle insurance: You must insure all motor vehicles in France for collision liability,
even if they are not in use unless all four wheels are removed. Policies are either third-party
(tiers collision), third-party fire and theft, or comprehensive (tous risques). Whenever you drive
your vehicle, you must carry a document – the attestation d’assurance – which the insurance
company issues to prove you are insured. Part of this is a green certificat d’assurance testifying
to the validity of your insurance. You must fix this to your vehicle windscreen, so as to be
clearly visible. Your insurer will also issue you with an internationally standard form, le constat
amiable, to complete in the event of an accident.

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Social insurance: Those who are working in France or studying in France have to register for
social security payments. Public social security schemes in France cover:
• sickness, accidents, and disability;
• parental leave;
• family benefits;
• old-age French pensions;
• unemployment;
• survivor benefits

Employers normally enrol their employees in a social security scheme. However, self-employed
workers need to register themselves into a self-employed scheme

Insurance for school children: Some home insurance policies will automatically cover your
liability for any damage or injury your child may cause at school; others will offer this as a
separate cover at a nominal premium. In both cases, the insurer will give you a certificate
or attestation that the school will ask you for at the beginning of the school year.

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 SOLVENCY RATIO

INDIA:
The solvency ratio of a company is a measurement of its ability to meet its debt obligations and
other financial commitments. Basically, a solvency ratio gives insight into the company’s cash
flow as well as whether this cash flow is capable of meeting the company’s liabilities - both
long-term and short-term. The understanding with this metric is that the lower a company’s
solvency ratio, the higher the likelihood that the company will default on its financial
obligations. Conversely, a company with a high solvency ratio indicates its financial
trustworthiness. It is more capable and hence more likely to fulfil its debt and other
commitments.

A life insurance provider with a high solvency ratio is more likely to be financially stable and
therefore, more equipped to pay out your insurance claims and survive for a long time. Hence,
an insurer’s solvency ratio is a direct indication of its ability to pay out claims. Therefore, by
reviewing the solvency ratio of a potential insurer, you can raise the likelihood of your claims
being settled even before you purchase the life insurance policy. Moreover, the solvency ratio
of an insurance company can be the crucial factor that helps you determine which life insurance
plan is a superior option.

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FRANCE:
The solvency ratio for insurance companies active in the non-life insurance branch in France
was over 260 percent in 2020, meaning that the added cashflow of these companies was capable
of covering their total long-term debt by a factor of 2.6 in 2020. Prior to that, in 2017, this
figure was just over 270 percent for French non-life insurance companies.
According to Irdai guidelines, all companies are required to maintain a solvency ration of 150%
to minimise bankruptcy risk.

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 ONLINE SALES, OFFLINE SALES & AGENCY SALES

ONLINE SALES IN INDIA:

The online insurance market in India is expected to reach a value of approximately INR 220
billion by 2024.

• Online life insurance sales are expected to grow at approximately 5% of the individual
annualized new business premium by 2020, whereas the non-life insurance sales are
expected to grow at more than 15% of non-life retail insurance business. This growth
trend, expected to grow stronger in future, is primarily attributed to the increase in smart
phone usage and internet penetration.

• The increasing internet and mobile usage have a major influence on changing customer
preferences, as the customers are getting used to researching products online. While the
traditional model of buying insurance is still the most sought in India, it was found that
online research on life insurance has been observing an increasing trend.

• Though the traditional channels, like agency and third-party distribution, have a market
share of more than 80%, the online distribution channel is evolving as the preferred
mode of purchasing insurance. Additionally, studies show that a typical online
customer is well aware of his/her needs and has been taking informed decisions.

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High Focus on Digitalization in India to Drive Online Insurance Sales

• Over the past few years, several initiatives were taken by the Indian government for the
digital transformation of the country. Digitalization has had its impact on several
industries in the country, insurance being one of them.

• In India, the digital influence on insurance sales is 13% for life insurance, 15% for
health insurance, 9% for motor insurance, and 21% for travel insurance.

• Approximately, INR 80 billion of new insurance sales are digitally influenced. It is

estimated that the digital influence on insurance sales may rise to 50% for life insurance
and 75% for non-life insurance, by 2020.

• Additionally, the reduced cost associated with buying an insurance through online
channel and the availability of a wide range of product information for the comparison
of policies are expected to attract more customers toward buying insurance policies
through the online channel.

ONLINE SALES IN FRANCE:

The France online insurance market (henceforth, referred to as the market studied) is projected
to register a CAGR of ~7.6%, during the forecast period.

• Online and direct channels are the fastest-growing business models in both the life and
non-life insurance industries in France. The market share of the online/direct channel
business in 2015 was 8.2% of the total business, while the total gross written premiums
of this channel throughout France reached EUR 99.3 billion.
• The online insurance channels in France grew significantly between 2000 and 2015,
with higher annual growth rates than the overall insurance market. In the major France
insurance markets, the direct channels grew with an average annual growth rate of
approximately 22% during 2000 to 2015, which is far higher, when compared to that
of the overall insurance market that grew at a rate of 5%.

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OFFLINE SALES IN INDIA
India has an extensive distribution network made up of direct sales offices
Direct distribution offices
Life network: The direct distribution of products is carried out through the offices of 24 life
insurance companies. The public insurer LIC alone owns 43% of the life network with 4 932
offices out of a total of 11 279 spread over the Indian territory.

Distribution of direct life offices by type of insurance company

Life companies 2015 2016 2017 2018 2019

Private companies 6 156 6 179 6 057 6 204 6 347

Life Insurance company (LIC) 4 877 4 892 4 897 4 908 4 932

Total life 11 033 11 071 10 954 11 112 11 279

The majority of life offices, that is 38.4% of the total, are located in semi-urban areas. Urban
areas have 35.1% of outlets. All major metropolitan cities have 24.5% direct offices. The
remaining 2% is located in rural areas.

Non-life network: Between 2018 and 2019, 270 new non-life direct offices appeared on the
market. Public insurance companies own 76% of this network with 8 150 offices out of a total
of 10 695. Metropolitan, urban and semi-urban areas account for 87.5% of the non-life network.

Breakdown of non-life direct network per type of company

Non-life companies 2015 2016 2017 2018 2019

Public companies 8 120 8 331 8 518 8 296 8 150

Private companies 1 742 1 869 1 946 2 043 2 459

Specialized companies 87 83 83 86 86

Stand-Alone Health Insurers

458 520 - - -
(SAHI)**

Total non-life 10 407 10 803 10 547 10 425 10 695

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 OFFLINE SALES IN FRANCE:
According to the French Insurance Federation (FFA), the insurance market closed the year
2020 with a turnover of 200.7 billion EUR (246.5 billion USD). This stands for a 12% decline
compared to 228 billion EUR (255.2 billion USD) recorded in 2019.

Health insurance and bodily injuries totalled 25.2 billion EUR (30.95 billion USD) of
premiums. Due to lockdown, the combined ratio of the motor class of business improved by
5.5 points to be set at 96.1% in 2020 compared to 101.6% one year earlier. The combined ratios
of the personal property and professional and agricultural property insurance deteriorated to
97.3% (94% in 2019) and 120.8% (95% in 2019) respectively.

In 2020, natural disasters cost insurers 3.1 billion EUR (3.8 billion USD). Despite the fixed
low rates, French insurance companies managed to preserve their solvency in 2020. Non-life
insurers maintained a high level of solvency with a ratio of 265% against 225% for insurance.
Life, individual accident and health insurance will continue to dominate the French insurance
landscape in 2020 with a market share of 70.5%. However, this sector's dominance is less
obvious than in 2010, when it accounted for 78% of total premium income.

This downward trend has persisted in 2020 with a 16.5% decline in life insurance premiums.
At the same time, the property and liability classes of business have reported a slight increase
of 1% in ten years.

2020 2019 / 2020

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
shares evolution

In billions EUR

Life insurance 161.1 141.6 132 138.3 149.1 156.3 155.4 157.1 163.4 169.4 141.5 70.5% -16.5%

Property and
third-party
45.5 48.4 48.7 50.2 51.2 52.4 53.3 54.6 56.2 58.6 59.2 29.5% 1.0%
liability
insurance

Grand total 206.6 190 180.7 188.5 200.3 208.7 208.7 211.7 219.6 228 200.7 100% -12.0%

In billions USD

Life insurance 213.5 183.3 174.4 190.4 181.2 170.8 163.7 188.2 186.9 189.7 173.8 70.5% -8.38%

Property and
third-party
60.3 62.7 64.4 69.1 62.2 57.2 56.2 65.4 64.3 65.6 72.7 29.5% 10.8%
liability
insurance

Grand total 273.8 246 238.8 259.5 243.4 228 219.9 253.6 251.2 255.3 246.5 100% -3.44%

Page | 21
AGENCY SALES IN INDIA:
The network of insurance agents operates under the supervision of IRDAI (market control
authority). It includes:
• agents practicing on an individual basis;
• agents operating as a legal entity (Corporate Agents).
The total number of insurance agents (individual and corporate agents) operating on the market
amounted to 2 716 003 as of 31 March 2019 against 2 489 117 a year earlier, up 9% compared
to the same period of 2018.
Agents practicing individually
They operate in life insurance where their number is very high. As of 31 March 2019, IRDAI
listed 2 194 747 individual agents having a license to distribute life products.

Breakdown of individual agent per type of company

31/3/2018 31/3/2019

Private sector workers 933 856 1 015 518

LIC 1 148 811 1 179 229

Total individual agents of life companies 2 082 667 2 194 747

Breakdown of individual agent per gender

31/3/2018 % 31/3/2019 %

Women 579 220 27.8% 603 208 27.4%

Men 1 503 447 72.2% 1 591 539 72.6%

Total 2 082 667 100% 2 194 747 100%

Corporate Agents: Also acting under the control of IRDAI, Corporate Agents can take several
legal forms: banking companies, non-banking financial companies, cooperative companies,
limited companies, limited liability companies.
Corporate Agents operate in life and non-life insurance. Their number amounted to 606 as of
31 March 2019, an increase of 15% over one year.

31/3/2018 31/3/2019

Corporate Agents 526 606

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 AGENCY SALE IN FRANCE:
The unique Register of Insurance, Banking and Finance Intermediaries (ORIAS) has published
its annual report on insurance intermediation. As of 31 December 2020, the report lists 67 572
insurance intermediaries. Despite a challenging economic and health situation, this number
increased by 5% compared to 2019 (64 191 intermediaries).

French insurance intermediaries are divided into four categories: brokers, general agents,
insurance agents and intermediary agents.

Insurance or reinsurance broker in France: The status of insurance or reinsurance broker is

that of a trader. He represents the client vis-à-vis the companies with which he works. He is
not bound by a contractual exclusivity to one or several insurance companies.
In December 2019, there were 24 988 insurance or reinsurance brokers in France, which,
according to the ORIAS report, is a 2% increase compared to 2018.

General insurance agent: The general agent exercises a liberal profession, being the
representative or exclusive agent of one or more insurance companies. There are 11 406 general
agents in France in 2019.

Insurance representative: The insurance representative is a non-salaried individual or a legal

entity, other than a general insurance agent. He is commissioned by an insurance company with
or without contractual exclusivity.

Insurance intermediary representative: The insurance intermediary representative is a

natural or legal person, commissioned by an insurance or reinsurance broker, a general
insurance agent or an insurance agent. The activity of insurance agents and insurance
intermediaries is limited to providing the contributions and collecting them as well as, in life
insurance, remitting the funds to the insured or beneficiaries. The management of insurance
contracts and the settlement of claims are excluded from their functions.

Licensed insurance intermediaries: situation as at 31.12.2019

2015 2016 2017 2018 2019

Insurance or reinsurance brokers 22 818 23 260 23 967 24 470 24 988

General insurance agents 11 696 11 643 11 515 11 364 11 406

Insurance representative 2 611 2 532 2 433 2 586 2 669

Insurance intermediary representative 17 606 19 216 21 130 23 265 25 036

Total* 53 380 55 618 58 357 61 386 64 191

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 UNIQUE PRODUCT IN FRANCE WHICH ISN’T IN INDIA

Cosmetic surgeries:
Cosmetic surgeries are mostly elective in nature, they are not covered under health insurance
policies. Moreover, since plastic surgeries are not termed as vital medical procedures
undertaken to protect the life of an individual, hence, they are not covered in any of the health
insurance in India but are available in the Insurance market of France.\

Death by Laughter Policy:

Laughing is regarded as a medicine that prolongs your life. But if you throw a glance at
ancient history, you would see that many people actually have dies from laughing. Laughing
hard is not always the only reason for death, as in most cases, it’s related to heart failures,
oxygen deprivation, brain or nervous dysfunctionalities, and so on. This is why many
comedians have purchased death by laughter especially in France to protect themselves from
someone in the audience dying on their shows. This not so heard of insurance isn’t available
in the Indian subcontinent.

Page | 24
 CONCLUSION

The Indian healthcare system is one of the largest in the world, with the number of people it
concerns: nearly 1.3 billion potential beneficiaries. The healthcare industry in India has rapidly
become one of the most important sectors in the country in terms of income and job creation.
In 2018, one hundred million Indian households (500 million people) do not benefit from health
coverage.
In life insurance business, India is ranked tenth in the world. India's share in global life
insurance market was 2.73 per cent during 2019. n non-life insurance business, India is ranked
15 in the world. India's share in global non-life insurance market was 0.79 per cent during 2019.
Globally, the share of life insurance business in total premium was 46.34 per cent and the share
of non-life insurance premium was 53.66 per cent during 2019. However, the share of life
insurance business for India was high at 74.94 per cent while the share of non-life insurance
business was at 25.06 percent. Insurance penetration which was 2.71 percent in 2001 has
steadily increased to 3.76 percent in 2019. During the fiscal 2019-20, the gross direct premium
of non-Life insurers was ₹1,88,916 crores as against ₹1,69,448 crores, in the previous financial
year 2018-19 registering a growth of 11.49 percent. Motor and health segments primarily
helped the industry to report this growth. Life insurance industry recorded a premium income
of ₹5,72,910 as against ₹5,08,132 crores in the previous financial year, registering a growth of
12.75 percent. While renewal premium accounted for 54.75 percent of the total premium
received by the life insurers, new business contributed the remaining 45.25 percent.
France is one of the world’s most developed insurance markets, ranking fifth globally and
second in Europe. The French insurance sector brought in a revenue of €293 million in 2017
and there are 285 insurance companies operating in the country. The Banque de France
regulates insurance in France through the Autorite de Controle Prudentiel et de Resolution
(ACPR). Over 260 insurance companies in France belong to the French Insurance Federation
French residents are legally required to take out a number of different insurances. In addition
to this, you can purchase various optional insurances too.

Page | 25
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