European Union initiatives. In France, deregulation has reformed the national health and pension systems and spurred new laws on retirement savings. A continued gradual withdrawal by the state produces new opportunities for insurers. In their quest for critical size at the worldwide level, these companies or groups are becoming world-class competitors. They have accomplished this through the growing sophistication and segmentation of products, and the reinforcement of management expertise in the systematic use of information technology in managing risks.
Technological advances allow some insurers to target niche areas or key geographic regions.
These advances could lead to fundamental reforms in the insurance structure and speed the current move toward globalization of financial services. New distribution methods, many based on personal selling, also are evolving. They will be free to trade in all EU countries, based on regulatory approval from any single country. The easing of border restrictions will benefit not only French-domiciled insurers, but will erode France's reputation as being inhospitable to foreign insurers importing products into France. Mergers and acquisitions have spawned huge enterprises with greater financial resources.