Easier termination after one year for new insurance contracts and longer waiver period for affinity contracts: insurance professionals and consumer defense associations have reached an agreement which should be implemented in July 1, 2023.
At the Financial Sector Advisory Committee (CCSF) of the Banque de France, we welcome a milestone day for the consumer. Unanimously, insurance professionals and consumer defense associations have signed a notice that notably simplifies the termination of certain insurance contracts and extends the waiver period for so-called affinity insurance contracts. These decisions obtained after a few months of negotiations are the result of warnings from the insurance mediator, Arnaud Chneiweiss, and which concerns contracts taken out by individuals. The stated objective is a effective July 1, 2023. MoneyVox details these changes for you.
Which new contracts will be cancellable at any time?
Since the Hamon law of 2014, termination at any time, after the first year of subscription, is possible for home insurance and car insurance. In 2019, health insurance companies joined the movement. Termination of the borrower’s insurance at any time will be implemented gradually from 1 June.
In its opinion, the CCSF therefore adds the list of contracts of juridic protectionof accident or hospitalization cover or insurance contracts for pets, which have been very fashionable in recent years. And if they may seem marginal, we are still talking about more than 40 million contracts in total.
The CCSF also agrees that the insurer informs the insured each year of the annual amount of the premiums and reminds him that his contract can be terminated at any time. He also undertakes a simplification of the information notice.
Which contracts remain excluded from the device?
Insurance contracts pension and long-term care guaranteeing an annuityseasonal contracts taken out for hunting, for example, and contracts covering new modes of mobility such as bicycles and electric scooters are not affected.
According to our information, the insurers refused the latter during the negotiations because the accidents are numerous and costly and threaten their balance.
save up to 50% on your borrower insurance
Affinity insurance: the withdrawal period increases
Another subject was unanimous among the professionals gathered at the CCSF. The Committee proposes to extend the waiver period provided for in the Hamon law, from 14 days to 30 days from the date of subscription within the framework of the affinity insurance contract. This is for example the protection of a smartphone or an extension of warranty for household appliances.
Mobile: should you insure your smartphone?
An important market which represents an annual turnover of 2.3 billion euros in France in 2020 according to the Federation of Affinity Guarantees and Insurance (FG2A). According to a negotiator interviewed by MoneyVox, a scenario was very often reported to the mediator: the insurer offered one month free and this covered the 14-day withdrawal period. The trap is then closed: at the end of this month offered, the client saw himself hired for a year with no possibility of going back. From now on, the termination period will only begin at the end of a possible free period..
Short and temporary insurance, such as trip cancellation, are not affected by the new regulations.
The end of the duplicate clause
Another element that the CCSF has agreed to modify to fight against these affinity contracts: the so-called duplication clause which requires, in the manner of the product being reimbursed if found cheaper elsewhere, to present an equivalent contract signed previously in order to be able to cancel.
In 2021, insurance mediation received nearly 22000 requests. A total increase in recent years.