2020 will mark the fourth attempt by lawmakers to foster competition in the creditor insurance market.

-

IStock / City Presse

The loan insurance market represents some 6 billion annual contributions, according to a study published in June 2020 by the specialized broker Sécurimut (a subsidiary of Macif).

It is the banks that are leaders in the sector, since the majority of homeowners take out this essential insurance cover with their loan offer from the lending institution.

A fight for freedom of choice

In theory, individuals have various opportunities to find more interesting elsewhere.

Since 2010, it has been possible to take out external borrower insurance when obtaining credit (Lagarde law).

You then have one year to replace it with another contract with equivalent guarantees (Hamon law).

Beyond this deadline, annual termination applies (Bourquin amendment).

While the share of alternative contracts (internal distributed by banks or external through insurance delegations) continues to grow, they still only represent 25% of the market, according to the report drawn up in November 2020 by the Committee. Financial Sector Advisory (CCSF) at the request of the ministry.

The figure rises to 40% for audiences aged 30 to 45.

However, as this report notes, the difficulties in the marketing process of these offers remain significant and many homeowners are quickly scalded by the steps to be taken to change borrower insurance.

The consolation prize

To go further, professionals and associations have been campaigning for years to include in law the option of infra-annual termination, in other words at any time, as is already the case for other individual insurance.

And precisely, this is what provided for an amendment to the ASAP law (for Action and simplification of public action) voted by a large majority by the deputies in October 2020. But the measure was withdrawn before the adoption of the text. final.

As a consolation prize, the legislator instead establishes a reinforced duty of information from March 2021. Borrowers will thus be able to choose the annual date that suits them to terminate their borrower insurance: either the anniversary date or any other date. expiry date specified in the contract.

For their part, bankers and insurers will now have the duty to warn future buyers of their right to annual termination and its terms, upon receipt of the signed loan offer but also and above all each year.

That said, the law does not impose any specific deadline to be observed for sending this letter, which makes some people fear that the insured will still be taken aback ...

Economy

House: What are the rules regarding the maintenance of its heating?

Economy

Housing: What are the possibilities when buying off plan?

  • Legislation

  • Insurance

  • Immovable

  • Credit

  • Rights

  • Bank