The security of understanding all your insurance policies

Prizes always increase. The insurance companies never reimburse. They never go bankrupt. Agents, brokers, mutuals, bancassurance companies, they are all the same…

That a priori There is no shortage of negatives in the insurance professions, which are among the professions that the French do not appreciate.

The 32nd edition of the Reavie professional congress, which will be held from October 12 to 14 in Cannes and will bring together around 800 decision-makers, is an opportunity to revisit these received ideas about insurance. It is also the title of the book that Cédric Pironneau wrote together with Jérémy Sebag (ed. Le Cavalier Bleu, 148 pages, €13).

The two authors helped found and run the wholesale broker SPVIE Assurances. Without absolving his profession of its faults and limitations, Cédric Pironneau guarantees that the sector can be pleasant.

Insurance is useless…
The insurance principle is based on the concept of risk, exposure to a potential danger that is inherent in a situation or an activity, and of which we could not face the financial consequences, regardless of whether they are related to goods or people.

Insurance is a recent invention.
Not at all, the idea of ​​risk sharing goes back to antiquity. In Babylon (1700 BC), the Code of Hammurabi specified the terms of sharing between the parties in case of loss during the transport of goods.

In Rhodes, those merchants whose goods arrived at their destination without incident compensated those who had been less fortunate: this was already piling up. Fire insurance contracts were established in 1666 in the United Kingdom after the Great Fire of London. They first arrived in France in 1786. Those for life insurance were approved in 1818, unemployment insurance in 1910 and tenancy insurance in 1982.

You have to make sure everything…
There are a number of statutory insurances, but they are customary. For individuals, only car insurance is compulsory and has been since 1958.

House insurance is not compulsory: it is possible to have a house in the countryside and not insure it. But in fact, condominiums require you to take out insurance, and when you have a bank loan, there is necessarily security insurance.

Companies are not required to be insured – although it is strongly recommended – but it depends on their situation or the businesses in question.

Insurance companies deliberately use incomprehensible jargon!
Insurance companies are not complicated by nature, but what they cover is: each insurable risk has its insurance and therefore its peculiarities and its jargon. A health insurance contract will dig into the complex procedures and mechanisms of social security, which classify medical actions in letters, even grouped in different legal codes. In addition, weights and degrees of coverage…

Nevertheless, the sector has made progress in terms of simplification. Internet insurance companies offer easier underwriting routes. The simplification and popularization work began with the IPID (Insurance Product Information Document), which has been mandatory for several years and summarizes the essential information about an insurance product in a synthetic and comprehensible way.

The insurance companies are not
uncomplicated by nature…

Better to be rich in good health than poor and sick… How to explain the price differences?
It is quite logical. Medical consumption is not the same depending on where you live, your financial means and your education.

The more we take care of ourselves, we have access to doctors, and the more prevention is an integral part of our thinking and the better we are treated… Regarding the price differences between insurances/funds, the doctor’s bill depends on the cost of property rent. If we put the map of French real estate together with the fees, they are identical.

Similarly, the risk premium is not the same for a vehicle in good condition and another poorly maintained; a factory with a sophisticated protection system and an abandoned warehouse…

Banks and insurance companies never lose money…
It’s not true. The insurance company Lloyd’s went bankrupt twice. Some could withdraw from certain risks, such as currently home insurance in Florida [suite à l’ouragan Ian, ndlr]. If an insurance company loses money badly, it stops.

Some sometimes increase the rates for events that are independent of you as an individual (attack, flood, etc.), but the principle of insurance is the solidarity between risk and the insured among themselves. Perhaps it is now that the insured, who has not had a claim for a long time, can question his contract… And no, there is no tariff agreement between the insurance companies.

In any case, we are always poorly compensated.
The reality of insurance coverage in France is very good, but we are no longer aware of it. Many risks are covered by the mutual. Between the ability to stop work, death, covered credits, health costs, we have great reimbursement levels. It could be better, but the French average rest tax is very low. As for the time limits for compensation, they are set by law.

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