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QBE’s potential withdrawal from the ten-year liability insurance market in France: a market in flux
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QBE’s potential withdrawal from the ten-year liability insurance market in France is a significant market development, but one that does not call into question the sector’s fundamentals. This type of situation is part of the cycles we are familiar with and know how to manage. Our role is to provide clarity and stability for our clients by anticipating solutions and securing their insurance programmes. We work closely with the best insurers in the market, without succumbing to short-term opportunism, but with a focus on continuity and quality of service.
A long-standing player, a movement rooted in technical and economic realities
With a presence on the French market for nearly 30 years, QBE is a recognised player in the construction insurance sector. The proposed withdrawal should not be interpreted as an opportunistic withdrawal, nor as a sign of a lack of expertise. It is primarily a response to structural constraints specific to the ten-year liability sector, which is characterised by:
- high and lasting claims frequency,
- continuously increasing repair costs,
- long-term exposure, with no real limit on costs in the event of a major claim.
In this context, the profitability of the sector historically remains difficult to achieve. The players who manage to maintain this precarious balance are generally: either specialized mutuals, capable of combining all branches of construction insurance (decennial liability, construction civil liability, damage insurance and all risks on site), or some very broad financial spectrum general insurers, capable of diversifying their portfolios, not only in the construction branch but also in other non-life branches (damage, automobile, general liability, etc.).
This move thus reflects a market reality: even established players may find themselves having to reassess their position in the face of challenging economic conditions.
QBE has supported the construction sector for nearly three decades. Howden France would therefore like to thank these recognised professionals and commend the insurer’s approach of transparency and foresight, which enables market players to prepare under controlled conditions.
A market in restructuring, following recent trends.
This movement is part of a larger dynamic:
- Tightening of subscription conditions,
- Increased technical requirements,
- Rationalization of available capacities.
Against a backdrop of pressure on technical balances, particularly due to changes in claims patterns, underwriting conditions are gradually tightening.
For companies in the sector, these developments may result in insurers becoming more selective, adjustments to premiums or cover, and longer underwriting and claims-handling times.
Continuity of guarantees and claims management: unchanged principles
Howden France reminds that:
- Ongoing contracts remain fully valid until their expiration,
- QBE remains obligated to handle the processing and compensation of claims under the subscribed contracts, even after its withdrawal from the market,
- Policyholders therefore retain their rights to past projects, without any changes.
The main issue therefore concerns the continuity of coverage for future projects to be opened from January 1, 2027, and the anticipation of replacements under good conditions.
A controlled and structured approach
With its relationships with all major insurers in the market, Howden France has already mobilized its teams to support its affected clients. The actions taken include: analyzing exposed portfolios, identifying suitable alternative solutions, and preparing for renewals in advance. The objective is to ensure controlled and secure placement conditions, without any coverage gaps.
Anticipate to secure.
Howden France invites construction actors to integrate these changes into their insurance strategy, by anticipating renewals, being proactive in claims management, judiciously arbitrating their own retention level, and relying on expert support. In this context, market changes can also be opportunities to reassess existing systems and optimize insurance programs in a changing environment.