In a few days, Christophe, 48, will change insurer for his credit, subscribed to the purchase of his house, ten years ago. “The media talked a lot about the Lemoine law last year [en 2022]I finally started in December. The process was a bit tedious, but should save me 4,000 euros over the last ten years of the loan”he rejoices.
Promulgated just a year ago, at the end of a legislative series with twists and turns, the Lemoine law of February 28, 2022 authorized the change of loan insurance at any time, free of charge, from 1er September 2022. Until now, it was possible to do so during the first year of the contract, then once a year, on its anniversary.
“It was the right time to introduce this right when purchasing power issues were looming”, believes MP Patricia Lemoine (Renaissance), who brought the law with the aim of boosting competition. In many cases, group contracts sold by bank insurers when the loan is signed are indeed more expensive than contracts with more individualized rates taken out outside the bank, “by delegation”.
The law also prohibited insurers, from 1er June 2022, to submit the borrower to a health questionnaire if he is under 60 at the end of the loan and the insured amount does not exceed 200,000 euros. The idea: to allow all borrowers, regardless of their state of health, to be covered under the same conditions, without additional premiums or exclusion of guarantees.
11 billion euros
These novelties were experienced as a big bang by the players in this market at 11 billion euros in annual contributions. The financial stakes are colossal, both for bank insurers, who largely dominate the market with 88% of contributions, and for external insurers, who have been eyeing this big cake for years, and brokers. During the debates that accompanied the passing of the law, insurers on both sides brandished the threat of serious collateral effects.
The opening of the market will accentuate the demutualization, that is to say the individualization of the tariffs, and thus generate price increases for the bad profiles of borrowers, said the bankers.
External insurers explained that the end of the health questionnaire would boost prices for young customers borrowing less than 200,000 euros, because it would be necessary to pass on the absence of premiums and exclusions, but also the risk of “anti-selection” : that people who know they are about to die or stop working borrow to benefit (them or their heirs) from reimbursement by the insurer.
You have 68.83% of this article left to read. The following is for subscribers only.