Insurance players, of all sizes and risk exposures, are facing the digital revolution, which is inescapable as the developments in other business sectors such as travel, tourism or catering show. To remain competitive in terms of customer relationships, insurers will need to raise their customer experience to the highest levels. This will require them to fundamentally review their processes, tools and information systems. It also calls for an upgrade of their human resources policies. The risks associated with the digital revolution are numerous, but I would like to stress the bigger risk associated with procrastination. This risk seems particularly important to me and it will be an essential focus of attention for supervisors. The digital revolution has other ramifications that require the attention of supervisors. One of them is the increasing inclusion of insurance products within package deals. This is particularly the case for affinity insurance products. These often involve the multiplication of intermediaries in the value chain. This phenomenon can blur responsibilities and the intrinsic economic value of these products, and we are therefore vigilant as consumer protection is especially important in a strengthened European regulatory framework for product governance (via the Insurance Distribution Directive in particular). Another one is the access and use of data. To remain competitive in the customer relationship and risk management, access to data and the ability to efficiently use them will be essential. These developments will involve further cooperation between the personal data protection authorities and the insurance supervisory authorities.

As a result, French insurance companies remain fairly solid, and the own funds held largely cover regulatory solvency capital requirements for both life and non-life insurance companies, which is an important asset in the challenging environment in which they are operating. This is notably the case for the mutual insurance sector. Its solvency coverage ratio significantly exceeds 300%, which is higher than the average in France, thanks in particular to their prudent and long-term approach, with less pressure from the financial markets. However, adapting to a challenging environment does not come without new risks. For instance, it is necessary to closely monitor risks related to policyholder protection and advice, the excessive lengthening of bond maturities or the over aggressive search for yield. Now, I would like to focus on regulatory developments, which are numerous and may have an impact on the insurance business model going forward. The French insurance landscape has experienced major regulatory changes over recent years: a modification 3  of the taxation system of life/savings insurance contracts (Flat Tax), the possibility of changing credit insurance contracts annually (Loi Hamon/Amendement Bourquin), and the creation of a specific prudential status for French pension funds. The new Pacte Bill should bring about further changes that seek to promote long-term investment in equity, including a reform of the French life long-term insurance product (also known as Eurocroissance). In addition, at international and European level significant regulatory developments are also in the making.