The government wants to boost competition in the insurance market in order to boost the purchasing power of the French. After insurers last week received their call for a “tariff adjustment” on damages and health insurance contributions, Economy Minister Bruno Le Maire is preparing new measures under the purchasing authority that will be presented to the Cabinet on July 6, Agvi learned from a source familiar with the matter.
According to this same source, the government will for the time being excluded from work on the contributions of insurance companies, which last week highlighted the weight of inflation on its technical profitability, the increase in the cost of natural disasters in damages and the cost of 100% health for supplemental health insurance. On the other hand, it wants to facilitate the termination of insurance contracts in order to allow consumers not to renew their contracts or to more easily choose a less expensive insurance company.
Easy online termination
According to our information, an article in the bill on purchasing power should provide an easier “three-click” termination of insurance contracts obtained online. Online cancellation will not replace traditional cancellation methods by mail or phone, but must be submitted to document holders who have concluded their contract online.
One market source notes: “If this measure is adopted, it will affect first of all insurance companies that have popularized online subscription and, in the first place, banking insurance companies.” “On the contrary, players who are now in the process of capturing market share should benefit from increased freedom of movement for policy holders!”, Interacts with a bank insurer.
Fight artificial extensions of contracts
In order to stimulate competition in favor of consumers, the Hamon Act introduced the non-annual termination of insurance contracts for damages (car and home). A logic that was later expanded to supplement health contracts and, more recently, to borrower insurance under the Lemoine Act. But clients who wish to take advantage of these laws to change insurance companies will in some cases encounter delays or administrative difficulties in terminating their contracts. By facilitating the termination, Percy thus wants to “fight artificial contract extensions,” a close source identifies.
“This is an action that consumers neither expect nor demand! It is an easy diversion strategy that consists of targeting an unpopular profession, when the real problem is low fuel taxes!”, he interacts with the market source. Even this procedure risks, in the long run, being counterproductive in terms of tariffs. Some insurance companies may be tempted to lower their rates to attract new customers. But, due to the decline in technical profitability, they will have to follow prices after that,” this same source judges.
Job placement for employment
According to our information, the government is planning to amend the Insurance, Takaful and Social Security codes to introduce this additional mandatory online termination method. But it will leave it up to insurance professionals to determine the practicalities of this function within the framework of market action that the Financial Sector Advisory Committee (CCSF) might lead.
While a new meeting with insurers is scheduled in Percy in mid-July, the government can then introduce new amendments while it considers the bill, which should be submitted to the Economic Affairs Committee on July 11 and debated in Parliament from July 18. To our knowledge, the executive may also consider working to implement 100% correctness by optometrists, the latter tending to offer frames not included in the 100% health basket. It represents a greater burden on the insured.