The standoff between Bruno Le Maire and insurance companies

The pressure is mounting on insurers.

The government believes that they are not doing enough to support the companies most affected by the Covid crisis.

We have rarely seen this, but it must be said that with this crisis, we have shifted into a largely administered economy.

The Minister of the Economy Bruno Le Maire has therefore just issued an ultimatum to insurers.

He asks them, at a minimum, to freeze the premiums that cafes, hotels and restaurants have to pay while they are closed.

You thought that prices were free in France, that insurers could set their prices freely, according to their risk calculation, competition etc.

Well the story is a little more complicated.

It is the crisis.

The state therefore bangs its fist on the table and gives insurers until Monday to make a gesture.

If not ?

Otherwise they will be taxed.

The Senate has already voted on a so-called "solidarity" tax bill which would cost insurers 1.2 billion euros, which is no small feat.

In short, if the companies do not make a gesture for hotels, cafes restaurants, the tax will be voted by the deputies.

It's brutal, Bruno Le Maire has recognized it, but it's effective.

And it must be said that insurers are a tempting target.

In this crisis, it is the banks that are doing well, they have a rather good image even if it was not at all forged ahead.

They distributed the loans guaranteed by the state very quickly, they granted moratoriums, staggered deadlines etc.

In short, they appeared alongside their clients in difficulty.

While insurers, on the contrary, have rather the wrong role.

Why ?

For several reasons.

First there were these showdowns on the coverage of operating losses of cafes or restaurants, where insurers were accused of trying to escape their obligations.

There have been complaints.

Justice has been seized.

Elected officials got involved, in short, it opened up a first front.

Critics redoubled when insurers asked some customers to sign endorsements to their contracts to exclude the risk of a pandemic.

Insurers have also been singled out for auto insurance rates which should continue to increase next year while this year they have saved money on these contracts because people have driven less and there is therefore had fewer claims.

There is certainly an element of injustice in the lawsuit that is made against insurers.

They have always been an easy target, but their image has deteriorated and that could cost them dearly.