Insurance

Changing borrower insurance remains complicated, pending simplification

Banks have long had a stranglehold on the borrower insurance market. Neither the development of alternative offers nor the various successive laws aimed at facilitating the task of households wishing to bring competition into play have so far made it possible to really challenge this monopolistic position. But where the Lagarde, Hamon and Bourquin laws failed, the Lemoine law finally hopes to move the lines.

A de facto monopoly

Banking institutions are, in fact, advantaged compared to their external competitors since they offer aspirants to property to take out their borrower’s insurance at the same time as their mortgage offer. This protection aimed at guaranteeing the payment of monthly payments in the event of death, disability, or even loss of employment is indeed essential for obtaining financing. However, once the contract is signed, it is very rare to go back on it.

According to the report published in 2020 by the Financial Sector Advisory Committee (CCSF), 88% of agreements are held by banks, which leaves a tiny share to alternative contracts distributed externally by insurance delegation intermediaries. .

Big financial stakes

According to a 2021 survey by UFC-Que Choisir, of the 7 million French people who have a mortgage, 80% are unaware of the cost of their borrower insurance. However, with 6 billion in annual contributions, the financial stakes are far from negligible. Opting for an insurance delegation would thus make it possible to save an average of 10,000 euros, according to a 2020 study by the specialized broker Sécurimut (subsidiary of Macif).

Beyond the gain in purchasing power, it is access to borrowing that can be facilitated or, on the contrary, hindered, as pointed out by Sandrine Allonier, director of studies for the brokerage network Vousfinancer: “Since the recommendations of the High advice for financial stability, and even more so since they are legally binding, loan insurance, which is taken into account in the calculation of the debt ratio, is an issue for the borrower. It can represent up to 2 points, and therefore tip a file beyond the 35% debt not to be exceeded. “And the specialist to add:” If establishing more competition in this market helps to lower prices, this is excellent news for borrowers. Especially at the moment to offset, at least partially, the rise in credit rates. »

The law that makes the difference

The State has long undertaken to facilitate the change of borrower insurance. In 2010, the Lagarde law made it possible to subscribe to external protection at the bank, subject to offering equivalent guarantees, when obtaining credit. Since the Hamon law of 2014, you then had one year from signing to change your contract. And beyond this deadline, it is an annual termination that applied under the Bourquin amendment of 2018.

Faced with the failures of these successive laws, the Lemoine law of February 28, 2022 establishes a pure and simple infra-annual termination. Therefore, the borrower can change loan insurance at any time, without waiting for the anniversary date.

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