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The National Assembly on Thursday gave the first green light to a reform of mortgage loan insurance, making it possible to change it, free of charge, at any time and no longer only on the anniversary date.

A bill “for fairer, simpler and more transparent access to the creditor insurance market”, carried by the deputy Patricia Lemoine (Agir group) was adopted at first reading almost unanimously (61 votes against one and two abstentions). The text must now be considered in the Senate, for adoption before the end of the legislature. Its entry into force is expected a year later.

Savings of 5,000 to 15,000 €

The loan insurance market is estimated at nearly 10 billion euros in contributions per year, and concerns nearly 7 million owners with outstanding credit. The objective is to introduce more competition in the banking sector, which has a strong position in this area (88% market share), and that of insurance, in order to lower the cost of such insurance.

The Minister of the Economy Bruno Le Maire on Wednesday expressed his support for this reform favorable to the “purchasing power of the French”, which will be valid for future and current contracts. In the hemicycle, Patricia Lemoine estimated that this new provision could allow “savings which could range on average from 5,000 to 15,000 euros over the total duration of the contract”. This reform which goes in the direction of “respect for consumer rights” is also “a measure of purchasing power, which does not cost the state one euro”, added the deputy for Seine-et-Marne.

Loan insurance covers various risks such as death, illness or disability, protecting both borrowers and banks against possible default.

Work on discrimination

The proposal was being examined at the Palais Bourbon as part of a day reserved for the center-right group Agir ensemble, a component of the majority. The text also provides for the launch of work with banks and insurers on discrimination against people due to illness, for access to credit and insurance.

The text proposes to reduce the time limits for the “right to be forgotten” for cancerous pathologies, and to include other pathologies in the so-called AERAS convention (Insure and Borrow with an Aggravated Health Risk). This agreement includes a reference grid to facilitate access to borrower insurance for certain pathologies.

letelegramme Fr Trans

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