Front Matter Page
IMF Country Report No. 19/323
FRANCE
FINANCIAL SECTOR ASSESSMENT PROGRAM
TECHNICAL NOTE—ISSUES IN INSURANCE SUPERVISION AND REGULATION
October 2019
This Technical Note on Issues in Insurance Supervision and Regulation on France was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on October 1, 2019.
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Front Matter Page
FRANCE
FINANCIAL SECTOR ASSESSMENT PROGRAM
TECHNICAL NOTE
ISSUES IN INSURANCE SUPERVISION AND REGULATION
October 1, 2019
Prepared By
Monetary and Capital Markets Department
This Technical Note was prepared in the context of an IMF Financial Sector Assessment Program (FSAP) in France in December 2018 and March 2019 led by Udaibir Das. Further information on the FSAP program can be found at http://www.imf.org/external/np/fsap/fssa.aspx
Contents
Glossary
EXECUTIVE SUMMARY
BACKGROUND
A. Scope
B. Market Overview
IMPLEMENTATION OF SOLVENCY II
A. General
B. Transitional Measures and Long-Term Guarantee Package
C. Selected Issues in the French Implementation of Solvency II
D. Own Risk and Solvency Assessment (ORSA)
E. Governance
F. Supervision Processes and Resources
G. Issues with Insurance Companies Passporting into the French Market
FIGURES
1. Size of the French Insurance Sector
2. Distribution Channels
3. Premium Flows for Life Insurance Companies
4. Key Non-life Metrics and Insurance Company SCR Ratios
5. Profitability of Life Insurers
TABLES
1. Recommendations for Insurance Supervision and Regulation
2. Number of Insurers
3. Risk Ratings and On-site Inspections
Glossary
| ACPR |
Autorité de Contrôle Prudentiel et de Résolution |
| CdA |
Code des Assurances |
| EIOPA |
European Insurance and Occupational Pensions Authority |
| EU |
European Union |
| EU27 |
Countries of the European Union excluding the United Kingdom which after Brexit occurs will simply be the countries of the EU |
| EUR |
Euros |
| FSAP |
Financial Sector Assessment Program |
| GAAP |
Generally-Accepted Accounting Principles |
| LTG |
Long-term Guarantee |
| MA |
Matching Adjustment |
| ORSA |
Own Risk and Solvency Assessment |
| QIS |
Quantitative Impact Study |
| QRT |
Quantitative Reporting Template |
| Sapin II Law |
Law No. 2016–1691 |
| SCR |
Solvency Capital Requirement |
| SCR Coverage Ratio |
Own Funds/SCR |
| SFCR |
Solvency and Financial Condition Report |
| Solvency II |
Directive 2009/138/EC of the European Parliament and of the Council of November 25, 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance |
| SRP |
Supervisory Review Process |
| TRFR |
Transitional on Risk Free Rate |
| TTP |
Transitional Deduction on Technical Provisions |
| VA |
Volatility Adjustment |