While insurance prices will increase sharply in 2025, the Prudential Control and Resolution Authority (ACPR) points out the general conditions of sale which contain too many cases of guarantee exclusions.
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– Car and home insurance pinned down by the sector policeman.
Do car and home insurance contracts still comply with current regulations? We must believe not, reports UFC-Que Choisir which is based on the bitter observation of the Prudential Control and Resolution Authority (ACPR). Indeed, the policeman of the banking and insurance sector points out the guarantee exclusions contained in auto and multi-risk home contracts. After analyzing a hundred contracts damage insurance sold to individuals, it appears that the cases of exclusions are too numerous.
Following its investigation, the control body notes that “many contracts […] contain “non-formal and limited” exclusions sometimes censored for a long time by the Court of Cassation. and this “does not allow policyholders to understand the exact extent and limits of the guarantees”. The ACPR goes further by listing the domains where the cases of exclusion are the most numerous, namely “in particular on “lack of maintenance”, “non-compliance with the rules of the art”, “damage caused by the insured” or even “negligence of the insured””.
Also read: In the event of a road accident, can dashcams be used as evidence?
“Poorly formalized” or “incomplete” monitoring
The sector policeman finally regrets the ineffectiveness of monitoring and updates general conditions of insurers, often “little formalized” or “incomplete”. The insurers concerned were not mentioned, but they reportedly indicated to the ACPR that they would comply quickly. This news comes as insurers have already announced price increases for 2025.
On the auto insurance side, prices should jump from 4% to 6%mainly due to the cost of new spare parts, increasing accidents and rising interest rates. The increase should be even more marked for home insurance since they will reach on average 12% in 2025 according to the consulting firm Facts & Figures, due to a major element: “The increase in the Natural Disaster contribution”.
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