The senators, mostly on the right, opposed Wednesday in committee the possibility of changingborrower insurance, free of charge, at any time and not only on the anniversary date, preferring to reinforce the information of the insured.
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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 in first reading in the hemicycle of the Senate. Carried by the deputy Patricia Lemoine (Agir group, component 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 this insurance.
Reinforce the information of the policyholders
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. This possibility “works“and drove”to an effective reduction in costs“For the insured, assures the rapporteur of the text in the Senate Daniel Gremillet (LR).
The senators thus removed in committee the possibility of termination at any time, while proposing to reinforce the information of the insured on the current law. The insurer would in particular 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 he must respect. The notion of “due date”, from which the period during which the insured is authorized to terminate is calculated today, would be clarified.
Savings of 550 million euros per year
Brokers and consumer associations do not hide their disappointment: “The reality behind all this is that the banking lobby is still at work, reinforced today by the electoral tactics of the opposition which refuses to validate a measure in favor of household purchasing power in the midst of a presidential debate.“Explains Astrid Cousin, spokesperson for the Magnolia Group, which specializes in loan insurance. However, according to UFC Que Choisir, for all the credits being reimbursed, households might on average obtain savings of at least 550 million euros per year with this device.
Same story with Olivier Moustacakis, co-founder of Assurland.com, an insurance comparator: “This refusal does not go in the direction of the consumer. 90% of the borrower insurance market is held by banks at prohibitive rates.Assurland carried out simulations revealing substantial differences between the cost of bank insurance and that of an insurance delegation. For a young 30-year-old worker, who borrows €150,000 alone over 25 years at the rate of 1.35%, the cost of bank insurance costs him €9,375, while a delegation of insurance would cost him €2. €380, a saving of €6,995.
Removal of the medical questionnaire
The senators also introduced a new measure, presented as “a major step forwardby Daniel Gremillet. It aims to 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 which will have the last word.