In a new report, Insurance in France: Market and IT Overview, Celent discusses key drivers in the French insurance industry and how insurers should be positioning their IT to take on upcoming challenges. Despite a slowdown in growth in 2007, Celent believes that the French market will maintain upward movement as long as French insurers are able to adapt to the new business rules impacting the market.
In a soft market where client behavior is changing and competition is increasingly fierce, insurers face tough challenges in trying to maintain their market share and gain competitive advantage. Successful insurers will be those that are able to understand the current drivers of change and find the right response in terms of business and IT strategies. Insurance companies with the ability to detect and attract new segments of potential insured will manage to thrive in this difficult environment. Additionally, companies with a lean administrative structure, strong brand, and efficient multichannel distribution will be able to attract new insured and promote client loyalty. Key success factors will be the implementation of an integrated multichannel distribution network and mastery of all facets of the insurance value chain.
"Optimally servicing clients will be the main concern influencing new IT investments in the future," notes Nicolas Michellod , senior analyst with Celent's insurance group and author of the report. "New IT project drivers will also include the need to implement efficient and comprehensive distribution models, promotion of lean administration structures, identification of profitable risks and innovative products, and meeting the compliance challenge of Solvency II."
This report looks in greater detail at the size and structure of the French insurance market and discusses salient IT trends.