Finances News Hebdo: First of all, how is the insurance intermediary sector evolving in this chaotic macroeconomic context?
FNACAM: Hardly, firstly because the market is still mainly driven by car insurance, and capitalization through bancassurance which, as its name suggests, is practiced by banks. While savings continue to rise and benefit insurers and banks, the automobile branch generates more and more costs for agent and broker intermediaries, while their incomes are stagnating. For example, the inflation of fuel prices pushes many people to sell their vehicle, which generates more tasks in the management without compensation. “Price” remains a primary criterion at the expense of quality; and recovery, which was already not obvious, also becomes very problematic. All this weighs on the cash flow of agents and brokers, who see, in an inflationary context, their margins eroding when they were already limited.
FNH: How do you approach the subject of digital distribution today?
FNACAM: Distribution through the digital channel is essential. Smartphones have flooded the market. Nothing is simpler today than to question the search engines to obtain information or an estimate. The practical side, the simplicity and the transparency offered by this channel are not lost on people familiar with digital technology, who are more and more numerous. But the benefits that customers derive from it can only be fully beneficial if the cominsurance companies involve insurance intermediaries in their digital strategy. The resources of insurance companies are much greater than those of intermediaries. Under these conditions, if they do not take the trouble to design or rather to co-design with them digital solutions, integrating both the negotiation of services and remuneration, they are putting the future of the consulting business at risk. insurance so essential to the customer at all stages of the life of his contract. Indeed, digital, contrary to what many think, generates more costs than it saves. Given the low remuneration of intermediaries, few are able to open and finance operations related to a digital distribution channel (investment in tools and training, digital marketing, costs, online payment costs, cost of electronic signature, etc.) and physical.
Insurance is an anxiety subjectgene and, for this reason, the human remains essential, whether at the time of the conclusion of the contract or at the time of the management of the claim. Digital is also justified by the need for a diversified offer. However, customers care little regarding insurance, apart from motor third-party liability which is compulsory (and whose subscription is easily verified by a police officer, which is not the case with other compulsory insurance). The market must be made aware of insurance and its usefulness in all branches. This awareness requires means that only insurance companies, or perhaps a group of intermediaries, can support. Digital distribution is therefore very practical for customers, but at the same time for its implementation to be successful and for the quality of service to always be there, it must necessarily integrate the intermediary, who remains an essential player.
FNH: On another note, the meeting pays great attention to digital and disruptive technologies. Are insurance intermediaries well prepared for this new situation?
FNACAM: In addition to the elements indicated in the answer to your previous question, we believe that so far, if there has been digital disruption, it is mainly at the level of the automation of management processes initiated by insurance companies, who took the opportunity to standardize their offers and delegate more management operations to intermediaries without compensation. Also, it is regrettable to see that, for the moment, the advantages offered by technology have not yet all been well exploited in favor of a winning partnership for all parties and bearing a clear improvement in the quality of customer service.
FNH: The issue of VAT is once once more at the center of the debate. What do you think is holding you back from resolving this issue definitively?
FNACAM: To set things straight, this is our request for the non-subjection to VAT of commissions paid to insurance intermediaries by insurance companies for the presentation of insurance transactions. Indeed, our profession continues to demand that this injustice be repaired: it should be remembered that we are the only country to be subject to 14% VAT on our remuneration paid by companies, while insurance premiums are already subject to ‘insurance tax’. This situation is totally unfounded. For several years that we have been defending this file, we have convinced the DGI of the legitimacy of our position and largely rallied the parliament and the Chamber of Councilors to our cause. Unfortunately, the Finance Laws of recent years were adopted in difficult economic circumstances, which did not militate in favor of our cause. We continue to fight and call for the start of the VAT reform which will put an end to this aberration once and for all.
FNH: As a Federation, what are your main expectations from the overhaul of Book IV of the Insurance Code?
FNACAM: One of the main projects for which the FNACAM has been working for a good number of years is the amendment of book IV of the insurance code relating to the presentation of insurance transactions. It is obviously eagerly awaited by the profession, because it is part of a process of revising the current regulations governing the profession and correcting certain shortcomings in the current code; it takes into account the advent of remote presentation of insurance operations. These main contributions for intermediaries would be the acceptance of a non-state license for people wishing to take the exam to become an insurance agent or broker, a reframing of the field of intervention of the insurance bank and finally offer the possibility for brokers and agents (following agreement of their principals) to have branches.