The insurance missions: to protect households and businesses and finance the economy

The insurance missions: to protect households and businesses and finance the economy

In 2012, in a particularly difficult environment, insurance held the role that is his own, both in her support in financing the economy than in the support and protection of households and businesses.
Interview with Bernard Spitz, President of the FFSA
French insurance
The insurance missions: to protect households and businesses and finance the economy
Bernard Spitz, President of the FFSA - Photo: Baptiste Hamousin
What conclusions can we make the year 2012 for the insurance industry?

The year 2012 was atypical for the insurance sector. First I would like to remind the essential: in a particularly difficult environment, insurance held the role that is his, both in her support in financing the economy than in the support and protection of households and businesses.
In France, the year that just ended was marked by the priorities of reducing public expenditure, accelerate structural reforms and put our business on the road to competitiveness. All this in a single purpose: the return to growth and employment.
Insurance is one of the sectors involved in achieving these goals. The economic model of our industry is simple: insurers cover the risks insured for the long term. They invest the bulk of money entrusted to them in business, particularly through stocks and bonds, and thus allow the financing of growth-enhancing projects. In 2012, investments of insurers in business continued to grow to exceed the symbolic threshold of 1,000 billion euros. Insurers have also made 4.2 billion new investment in SMEs and ETI. Finally, insurance companies are the first domestic debt holders of the French state.
As we see, the insurance remains the lifeblood of economic growth. It also plays an integral role in the economic shock crisis that our country is going through.
Among the measures taken in 2012, there raising the ceiling of the Livret A and LDD. What was the impact on the life insurance?

The increase in the ceiling of the Livret A and LDD led the French preferred placement of their savings on these books at the expense of other investments including life insurance. We observed in 2012, for the first time, a negative net inflows of € 3.4 billion on life insurance contracts, while net inflows of regulated savings peaked at the same time 49.2 billion.
This "preference" given to short-term costs the taxpayer a euro invested in the booklet A cost four times more expensive than budgeted euro invested in life insurance. It also penalizes our economy because it does not support the growth that feeds on long-term investments. It is essential to reorient the household savings into long-term savings, including maintaining its tax benefits for life insurance.
The year 2012 was marked for the insurance industry in a significant tax burden.

Rather than discuss the year 2012, I prefer to take stock of the past four years. Since 2009, if we add all the fees and taxes, the insurance industry faces a heavier its tax of 8.7 billion euros in annual recurring tax and € 3 billion one-time sampling.
General measures supported by all the companies have added specific measures for the financial sector or the insurance sector as a tax on financial transactions, broadening the tax base on wages and social solidarity contribution of insurance companies and the new "exit tax" on the capitalization reserve represents alone, 800 million euros.
Our industry is involved in far more than its share to the fiscal effort required of the community. The tax burden is reflected especially on performance rates on life insurance contracts.
What has been the behavior of households and for insurance companies during 2012?

Regarding health insurance, we observed an overall decrease of 6% contribution for the year, in particular because of the situation of crisis in our economy and the decline of life insurance inflows.
The amount of benefits and compensation is almost stable at + 1%. The insurers paid $ 131 billion in 2012 to their insured under the insurance (Savings, Provident).
Property insurance and liability premiums are rising in all sectors except the construction whose activity recorded a slowdown. The amount of claims is also an increase of 4% due to an increase in the average cost of compensation. In 2012, insurers have paid 35 billion euros of losses in property insurance and liability.
These figures speak for themselves: Insurance is present every day from households and businesses. It is a considerable advantage for the French economy.
What will be the major market areas of development of insurance in 2013?

In 2013, it is imperative to continue to give insurers the means to continue the role that is theirs in the financing of the economy.
To do this, life insurance should receive some tax and regulatory stability in order to maintain the confidence of investors. Moreover, the demands of European insurance players on the evolution of international financial standards must be heard by the European authorities. In the context of Solvency 2, launching an impact assessment in late January should enable the forthcoming adoption of counter cyclical measures that will allow our industry to continue to invest to support growth in Europe.
In 2013, the insurance part, as she used to, to advance the reflections on the great debates of society. It will continue to intervene in support of existing public programs in the areas of health, retirement and dependence. It is indeed the responsibility of insurers to help ensure that as many of our citizens have access to complementary health, to prepare their retirement in the best conditions and have adequate support during any input dependence.
In insurance of property and liability insurers will continue the many projects already underway including the fight against fraud, the fight against uninsured or evolution of HRM conventions. They also will work to adapt their offerings to environmental and societal changes that affect areas such as natural disasters, bioethics, digital risk, environmental responsibility, etc.
The year 2013 will again be an important year for the insurance industry with many challenges for households, businesses and the economy of our country. Insurers will strive to continue to perform the tasks that are theirs: to protect households and businesses and finance the economy.