Better access to loan insurance but more expensive prices

With the Lemoine law, which entered into force on June 1 for new loans, those who borrow less than 200,000 euros are no longer subject to a health questionnaire to ensure their credit, provided that the total repayment is made before the age of 60 .

Sick people are no longer subject to a health questionnaire

With the Lemoine law, which entered into force on June 1 for new loans, those who borrow less than 200,000 euros are no longer subject to a health questionnaire to ensure their credit, provided that the total repayment is made before the age of 60 .

For people who are ill or have been ill recently, “you go from the impossible to the possible”, greetings to Kévin Spreux, Development Director of Prelys Courtage, the company that accompanied Emma.

During her first attempt, she had to submit a health questionnaire because the credit over 25 years took her more than 60 years. As expected, his case was dismissed.

The fact that she has been in remission since 2020 has not changed anything: “We hold a cancer brand”, observes Emma, ​​for whom the Lemoine Law allows it “to restore some justice”.

General increase

Like her, many people have taken up this change in legislation to try to get better insurance, Prelys Courtage testifies.

However, by insuring people who were previously excluded or whose cases were accepted on payment of an additional premium, insurers are taking on a risk that they consider difficult to quantify.

It may “create an unexpected effect for people who know they are going to die”, cynically summarized the head of a mutual insurance company to reporters.

If some insurers have promised not to raise their prices, such as CNP Assurances, a subsidiary of La Banque Postale group and leader in this market, or even to lower them for young people, such as Crédit Agricole, number two in borrower insurance, c is far from the case for everyone.

+ 49% on average

The number of bonuses has increased. In what proportions? According to a study by the company Vertone, which compared 1,700 rates from non-bank insurance companies, before and after the adoption of the law, rates for borrowers who escape the health questionnaire increased by 49% on average, with very large differences.

Olivier Le Gallo, managing director of the online broker Magnolia.fr, estimates for his part that this increase was more around 20%.

The new provisions of the law, such as shortening the period of the right to be forgotten, which exempts from declaring certain diseases five years after the cessation of therapeutic protocols against ten years previously, are “societal progress, but which comes at a price”, He travels.

Boom calls

Another change in the law with strong consequences: the possibility to change the insurance company at any time and no longer only during the first year and then on the anniversary of the signing of the contract.

At Magnolia.fr there was “a pretty incredible explosion of requests” with calls tripling in the first week of September as soon as the new legislation applied to old loans, according to Mr Le Gallo.

Borrower insurance is a market that is approximately 85% owned by banks, which make significant margins to the detriment of borrowers’ purchasing power, condemning for several years consumer associations and insurance companies themselves.

At the beginning of October, the European Insurance Authority pointed out the bancassurance companies with reference to “significant risk of harm to the consumer” and “Inadequate management of conflicts of interest”.

Termination of a contract concluded through a bank in favor of a traditional insurance company can save several thousands or even tens of thousands of euros without reducing the risk coverage, since this change can only be made with equivalent protection.

And the banks that used to drag their feet are now playing “played and reactive” since these legislative upheavals, notes Mr Le Gallo.

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