Analysis Of Problems and Countermeasures in The Development of The French Insurance Industry

Abstract

The insurance industry is a developing industry with technological change and diversification of the insurance industry. The opportunity to develop rapidly comes with risks and problems. The purpose of this paper is to elaborate on the issues that the insurance industry is facing and provide suggestions, taking the French insurance industry as a representative. This article generally analyzes three current difficulties facing the French insurance industry: 1) The risk that climate change may bring will tremendously influence the development of the insurance industry. 2) There are difficulties for insurance companies in France to make the digital transformation, coming with the risk of information leaking. 3) French insurance companies are subject to regulatory pressure on multiple dimensions. This study proposes three corresponding responses to the existing problems: 1) Improve climate risk prediction systems and plan in advance for climate-related insurance. 2) Gradually switch information systems with the help of technologies. Put main efforts to foster talents in AI. 3) Closely cooperate with review bodies and enhance assessment of third-party risks. It is anticipated that this paper could help the French insurance industry face challenges in the future.