FRANCE Trends and Developments Contributed by: Martine Samuelian, Olivier Lyon Lynch and Hugues Vaysset, Jeantet
In summary, it seems to me that the S/P of a product line must naturally be monitored, not only because from a prudential point of view it cannot lead to a com- bined ratio that is consistently higher than 100%, but also because, for consumer product lines, it cannot be sustainably below 30% without a detailed assessment by management, in order to prevent any marketing that could not be justified by the customer’s interest. […]” Distribution From Third Countries and Vigilance by the ACPR Reminder of the prohibition and responsibility of manufacturers On 15 September 2025, the ACPR published a press release on telephone canvassing outside the Euro- pean Economic Area (EEA), setting out the authority’s particularly strict position, which is likely to have a significant impact on distributors of insurance prod- ucts in France. The ACPR states that checks carried out since 2023 have revealed that some insurance intermediaries are inappropriately using structures established outside the EEA to market insurance contracts covering risks located in France. Two main patterns have been iden- tified: firstly, intermediaries registered in France using branches located in third countries to distribute con- tracts, even though these branches should primarily serve the local market where they are established; and secondly, the use of call centres operated by com- panies located outside the EEA, particularly in health and affinity insurance, which illegally carry out distri- bution activities reserved for intermediaries registered in France or in another EEA member state. These practices are said to have led to numerous regula- tory breaches and complaints, including aggressive commercial practices, the abusive reclassification of unsolicited calls, gaps in the information provided to customers and the absence of audit trails. In this regard, the ACPR points out that the Insurance Distribution Directive, transposed in the EEA, requires intermediaries to be registered in the member state where they have their registered office or residence, in accordance with Articles L.512-1 and R.512-1 of the Insurance Code. Consequently, a company estab- lished outside the EEA operating a call centre is not
authorised to distribute insurance contracts for risks located in France. Similarly, a branch of an intermedi- ary registered in France and located in a third country may not be used to distribute such contracts, at the risk of undermining the principle of territoriality of dis- tribution and preventing effective supervision by the competent authorities. In this context, the ACPR has emphasised the central role of the various players in compliance control. Net- work intermediaries (wholesale brokers) must ensure that their partners comply with the conditions for access and professional practice, do not distribute illegally from a third country and do not make abusive use of branches outside the EEA, by putting in place rigorous control and audit mechanisms. Insurers, as product manufacturers, and network facilitators, when they are co-manufacturers, bear a central responsibil- ity for the compliance of the marketing strategy and must rigorously manage the identification, measure- ment, monitoring and control of compliance risks at all stages of the distribution chain, including those resulting from the actions of their partners. Legal scholars have repeatedly pointed out that the ACPR’s position appears to be particularly strict and more demanding than EIOPA’s Supervisory Statement. EIOPA did not appear to prohibit the use of branches located abroad, provided that, in accordance with its recommendations, real activity was maintained within the intermediary registered in the territory of the mem- ber state concerned. In this regard, practitioners indicate the absence of an explicit legal basis and the history of the position tak- en by the French Insurance and Mutuality Insurance Supervisory Authority (ACPR) in 2008, which validated such a scheme, to challenge a general prohibition on distribution from third countries. Nevertheless, the ACPR does appear to be strength- ening its expectations regarding the control of distri- bution networks by product manufacturers. Supervision of the Insurance Sector In 2025, the ACPR continued to supervise the insur- ance sector and maintain a high level of control, dem-
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