senators refuse termination at any time

The senators, mostly on the right, opposed Wednesday in committee the possibility of changing borrower insurance, free of charge, at any time and no longer only on the anniversary date, preferring to strengthen the information of the insured.

This is the flagship measure of a bill for fairer, simpler and more transparent access to the borrower insurance market, which will be debated next Wednesday at first reading in the Senate Chamber.

Led by MP Patricia Lemoine (Agir group, part of the majority) and supported by the Minister of the Economy Bruno Le Maire, this text was adopted almost unanimously by the National Assembly. Its objective is to introduce more competition in order to lower the cost of these insurances.

Interview with Patricia Lemoine: The reform of borrower insurance will restore purchasing power

Asked by AFP, Eric Maumy, general manager of the wholesale insurance broker April and member of the Association for the promotion of competition in creditor insurance (Apcade), said he was amazed by the vote of the senators, in the process of to go wrong, he said. I have a lot of trouble understanding that the Senate could become the mouthpiece of bankers against consumers, who could gain 550 million euros in purchasing power per year if the measure were adopted, he castigated.

Since 2010, the Lagarde law allows borrowers to opt for another insurance than that offered by their bank. And several other laws have then already worked for more competition, in particular allowing customers to change insurance every year, but alternative insurers accuse the banks, which hold the majority of the market, of obstructing.

Keep the existing and reinforce the information

This possibility works and has led to an effective reduction in costs for the insured, assures the rapporteur of the text at the Senate Daniel Gremillet (LR). The senators thus removed in committee the possibility of cancellation at any time, while proposing to reinforce the information of the policyholders on the current law.

In particular, the insurer would have the obligation to inform his client each year of his right of termination as well as the terms of implementation of said termination and the various deadlines that he must respect. The notion of lucky date, from which the period during which the policyholder is authorized to terminate is calculated today, would be clarified.

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Removal of the medical questionnaire under conditions

The senators also introduced a new measure, presented as a major advance by Mr. Gremillet. She aims remove the medical questionnaire for home loans of less than 200,000 euros which expire before the borrower’s 65th birthday.

The borrower’s insurance market is valued at nearly 10 billion euros in premiums per year, and concerns nearly 7 million homeowners with outstanding credit.

If the senators remain in session on their version, and then deputies and senators do not reach a compromise in a joint committee, it is the National Assembly that will have the last word.

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