The Autorité de la concurrence, at the request of the Senate Finance Committee, has published an opinion regarding the competitive landscape of the local and regional public authority property insurance sector in France. This sector is crucial for safeguarding public assets but is currently dominated by two major players, Groupama and SMACL Assurances SA, which together hold over 40% of the market share.

The authority's findings indicate that while local and regional public authorities are not legally required to obtain property insurance, they typically do so to mitigate financial risks. However, they encounter several challenges, including complex public procurement rules, unsuccessful tender processes, and rising premiums and deductibles. These obstacles contribute to a low competitive intensity within the sector.

To address these issues, the Autorité has proposed seven recommendations aimed at enhancing competition. The first three recommendations focus on improving the preparation of public insurance contracts, urging authorities to better understand their assets and risks, seek assistance in the tender process, and share experiences with other authorities. The remaining recommendations emphasize the need for clearer guidelines on public procurement, extending response deadlines for insurers, staggering tender processes, and considering contract awards by lot to encourage participation from a wider range of insurers.

The opinion underscores the unbalanced relationship between local authorities and insurers, which often leads to unresponsive tender processes and unfavorable contract terms. The Autorité's recommendations aim to empower local and regional public authorities to stimulate competition and secure better insurance coverage.