The Prudential Control and Resolution Authority (ACPR), policeman of insurers and banks, fired red balls on Wednesday on affinity insurance (travel, telephone), which is not useful for the customers who subscribe to them and generates numerous disputes.
These insurances, very widespread and supposed to be optional, are offered in particular when purchasing a mobile phone, a computer, a show ticket or a trip. Sources of discontent, they represented 18% of referrals to Insurance Mediation in 2022, and 12% for mobile phone insurance alone.
The conditions of these insurance products are often very restrictive, even exclusive, and provide little protection to customers while at the same time the commissions of those who distribute them are very high, underlined the ACPR during a conference dedicated to the protection of insurance. banking and insurance customers.
We don’t see the customer’s interest in these products at all.
It must be very clear: we do not see at all the customer’s interest in these products, Grgoire Vuarlot, director of the control of commercial practices at the ACPR, told professionals in the sector.
It seems totally abnormal to us that out of 10 euros of contributions, only 2 actually serve to cover customer claims, or even less, he estimated, while for compulsory insurance (car, home) around 8.50 euros goes to the customer.
It seems totally abnormal to us that out of 10 euros of contributions, only 2 actually serve to cover customer claims, or even less.
We need collective and rapid awareness because obviously the future of a product that is not useful for the customer is to no longer be marketed, thundered Grégoire Vuarlot.
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Through various checks, the policeman of banks and insurers, backed by the Banque de France, noted that refusals of coverage were numerous, between 40 and 80% for cancellation guarantees in travel insurance for example. And the complaints are high: in mobile insurance, around 60% of them are linked to a lack of consent to the contract, according to the organization’s control service.
Information too fragmentary
For the customer who takes out affinity insurance in store or online, the information is often too fragmentary, including dense and complex notices, and he generally only has a very limited time to read the contract, a- he added.
The ACPR also reminded insurers and intermediaries that the regulations require the customer’s interests to be taken into account, from product design to distribution. For more effective monitoring, the supervisor recommends strengthening insurer controls at distributors, and matching them with sanctions where appropriate.
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