Investments will remain short-term in nature. Supplemental plans may continue to grow, though companies burdened by heavy social charges, will not be able to expand them substantially. Life insurance and special savings vehicles, taken out by individuals, will remain popular, as long as tax advantages remain intact. The proposed pension plans will eventually have the most impact on this segment. There has been considerable discussion in France about the pending failure of the complementary pension system.
Conservative politicians argue in favor of corporate and personal funded schemes.
Nonetheless, unions, some politicians and many workers believe pension provision is a state duty and any shortfalls should come from the general budget. The insurance sector in France is characterized by a considerable variety of companies ranging from giant insurance groups operating in all sectors and possessing a significant international presence to comparatively tiny niche players specializing in specific lines of business. There are also a large number of mutual insurance companies which are particularly strong in the personal non-life sector. Bancassurance is at a more developed stage in France than in any other large European country. Insurance companies offer traditional life insurance policies, as well as property and casualty insurance.