Positive outlook for French insurance buyers, says Marsh’s Domange

The outlook for the large risks insurance market in France is positive as Amrae members gather for their annual rencontres in Deauville, according to Fabrice Domange, the recently appointed CEO of Marsh McLennan France. “The overall outlook for the insurance market in France appears favourable, with a trend of decreasing rates and an overall competitive climate,” Domange told Commercial Risk at Amrae’s annual conference. “Globally, there is adequate capacity available, particularly as insurers regain appetite for good risks and restore capacities that had been reduced during the hard market,” he said. But the broker pointed out that it’s not all plain sailing. Certain areas remain “challenging” depending on the level of prevention, claims records and risk, said Domange. “Amrae members can expect a moderate softening of terms and conditions this year, particularly in lines like property and financial lines including cyber, in which competitive conditions are prevalent. However, they should remain vigilant about specific insurance sectors that may still face difficulties. For example, auto, fraud and casualty when there is a US exposure,” he explained. The recent growth in captives among French risk managers, and the arrival of captives at home following the adoption of more friendly rules, is helping companies manage their insurance programmes, said the Marsh leader. Domange pointed out that Marsh has been involved in the creation of half of the 20 new ‘onshore’ captives created in France. He certainly sees this as a positive trend and not a threat to the commercial insurance market. “The promotion of onshore captives in France is a positive development, as indicated by the strong development of the French captive market since 2020, marked by the creation of a provision for resilience in 2023,” said Domange. “It is good news because even if the insurance market stabilises, there are still disparities in treatment and sometimes dissatisfaction with coverage. Captives then represent a good alternative for risk management,” he added. “In 2024, numerous captives were created in France. France now has 20 active captives. All risks are considered. Mainly liability and business interruption losses, but also cyber, health prevention and all risks that cannot be transferred to insurers,” continued Domange. Brigitte Bouquot, former president of Amrae and now chair of the recently created Fédération Français des Captives des Entreprises (FFCE), is keen to see the captive concept embraced by a far wider pool of companies and not just multinationals. Domange is certainly seeing rising interest among mid-sized firms. “We notice a growing interest in captives from mid-size businesses. This trend is likely to continue, especially as companies seek innovative risk financing solutions,” he told Commercial Risk Europe. The impetus for the captive revolution in France was the desire for a more resilient economy and society in times of crisis. Recent catastrophic flooding in France, Germany and Spain has shown how vulnerable European nations are to the effects of climate change. Domange agrees with many that a more coordinated approach to loss prevention and risk transfer is needed across the economy that involves national and regional governments. “In light of recent natural catastrophes, including flooding, a more coordinated approach between the government and industry actors is definitely essential,” he said. “Additionally, there is a need for collaboration to address the increasing frequency and intensity of extreme weather events,” added Domange. The broker said that companies must integrate environmental risk management strategies into their planning and invest in sustainable practices to mitigate future impacts. And importantly, such effort needs to be recognised by insurers, something that was clearly lacking during the recent market hardening. “We urge insurers to offer advantageous conditions for companies that integrate biodiversity diagnostics, prevention plans and risk management,” said Domange. Another area that requires continued vigilance, and one that was again highlighted in the World Economic Forum’s (WEF’s) Global Risk Report 2025, is cyber. Domange noted that companies face significantly improved cyber insurance market conditions since the height of the hard market, when capacity evaporated leaving many corporations seriously underinsured. But perhaps the previous brutal market shift, along with high-profile events such as CrowdStrike, helped focus the minds of risk managers and their colleagues on improving risk identification and prevention before transfer. “Regarding cyber risks, after a tough market cycle, the cyber insurance market has entered a phase of rapid relaxation with increased insurer appetite,” noted Domange. “These last years during the hard market, companies have improved prevention and quality of underwriting information, resulting in lower claims frequency for the most mature risk profiles,” he said. But the threat is by no means receding and so vigilance must be maintained, urged Domange. “The cyber threat remains significant, indicating that while there may be adequate capacity, firms must continue to enhance their cybersecurity measures and risk management strategies by adopting robust governance strategies, investing in secure technological solutions and providing resources for employees training and awareness,” he advised. Another critical area in which risk and insurance managers will be increasingly involved is supply chain management and resilience, believes Domange. This is, of course, closely linked to the current volatile geopolitical environment, conflicts, extreme weather events and rising trade tensions that were all highlighted in the WEF report. Marsh has identified this important area and, along with Oliver Wyman, invested in the creation of a solution to support customers called Sentrisk. Such risk support tools are vital because insurance coverage is only part of the answer. New and innovative thinking and solutions are needed in the face of such a challenging risk landscape. “The main risks facing French risk and insurance managers this year include geopolitical risks, such as supply chain disruptions and regulatory compliance challenges, as well as digital risks like cyber threats and data privacy issues,” said Domange. “Environmental risks, particularly related to climate change and extreme weather events, are also critical. To cope, it is necessary to imagine more global and creative resilience solutions: think outside of the box, combine complementary skills to create value,” he continued. This means that the strategic orientation of the MMC group has to be focused on unlocking its full potential by combining all the expertise and skills. As Domange pointed out, Marsh needs to take the same holistic and enterprise-wide view as its customers to deliver comprehensive support to mitigate and manage risks in a holistic manner. Sentrisk is an example of this. It is a platform to manage supply chain risks, created by combining Marsh and Oliver Wyman expertise. This is an innovative concept, based on advanced AI technologies and geospatial satellite imaging. At a time when supply chains are under intense internal and external scrutiny, this tool enables in-depth analysis of the supply chain, identifying vulnerabilities at low, medium and high risk levels, down to the specific level of a site, a tier two or three supplier, or a component, explained Domange.

Positive outlook for French insurance buyers, says Marsh’s Domange

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