Amrae sees pro-insurance buyer trend continuing if market dodges turmoil

French companies enjoyed a positive renewals season in January and the market looks like remaining favourable for buyers this year as long as trade and financial market turbulence don’t ruin things, leading Amrae figures have told Commercial Risk Europe. “As of today, it looks as if what we saw in January will be valid for the 2026 renewals too. But with all the turmoil we are living today, especially in geopolitical terms, there could be a global impact on insurance and reinsurance markets,” said Alain Ronot, the treasurer at French risk management association Amrae. If the status quo is maintained, improvements reflected in a survey of French insurance buyers recently published by Amrae indicate that July and end-of-year renewals should result in better rates and conditions for French companies, and an even greater ability to negotiate covers with underwriters. The majority of French risk managers that took part in the survey reported that January renewals went ‘very well’ or ‘well’ for their companies. With the exception of some tricky lines such as property with catastrophic exposure and US liability, many French insurance buyers were able to negotiate improvements in their programmes such as higher limits and long-term agreements (LTAs). The latter development was particularly interesting because LTAs had all but disappeared during the hard market that started in 2019, said Ronot. “LTAs are interesting for companies as they allow us to better manage our risks in the medium term. We can also concentrate on managing risks rather than on engaging in long negotiations with underwriters,” he said. “We have seen multi-annual contracts for risks that were not possible to obtain in the past. This year, we have even seen LTAs for cyber,” added François Beaume, a vice-president at Amrae. French buyers also report that they are now able to talk with underwriters that have closer links to real decision makers. “In previous years, ever more insurers took decisions about relocating underwriting decision centers outside of France,” Ronot said. “Now it seems that dialogue has improved and we are a little closer to decision makers. But we would like to see a higher degree of flexibility in terms of limits, scope of coverage and of meeting buyers’ evolving needs.” The survey also found that French buyers are increasingly placing cover with local carriers. Amrae attributes this phenomenon to a significant increase in capacity offered in France and the EU by new arrivals. “It seems that French buyers are not tapping other market because they have found satisfactory conditions in the local market. It is surely simpler for French risk managers to place risk in continental markets than in London,” said Ronot, who is also the group head of risk and insurance at Capgemini. There are several advantages of buying locally rather than going to London, the Amrae board members said. “Brexit has had an impact on access to the London market, but not a lot. The differences were there before Brexit,” Beaume, who is also the senior vice-president of risk and insurance at Sonepar, told Commercial Risk. “However, when a French company buys a policy in London, it is submitted to Anglo-Saxon law and not the French law. If there is a conflict, it will have to be settled in London, with a London-based arbiter. It is not the same.” Ronot added that negotiation with several Lloyd’s syndicates tends to add an extra layer of complexity not necessarily found in the EU market. French captives are also flourishing in France since new rules were introduced to encourage the use of such vehicles at home. Beaume believes this trend will continue even as the market softens. “Captives will continue to answer to the needs of buyers, but also to a trend among insurers who are disengaging from certain risks. Insurers are still demanding higher deductibles for risks that they do not want to cover, and captives allows companies to react to that trend,” he said.

Amrae sees pro-insurance buyer trend continuing if market dodges turmoil

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