Parliament adopts borrower insurance reform

Termination at any time, cancellation under conditions of the health questionnaire, time limit for the right to be forgotten reduced: the Parliament definitively adopted Thursday, by a final unanimous vote of the Senate, a reform of borrower insurance for home loans. After a final National Assembly vote on Tuesday, the right-wing opposition-dominated Senate passed the bill “for fairer, simpler and more transparent access to the borrower insurance market” by 343 votes for and zero against.

Led by MP Patricia Lemoine (Agir) and supported by the government, the reform aims to introduce more competition in the banking sector, in a position of strength in this area (88% market share), and in the insurance sector, in order to reduce costs for the consumer. “This bill represents a new perspective to support the purchasing power of the French, but also a measure of justice towards all people suffering from pathologies preventing them from carrying out their projects, for lack of mortgage”, responded the presidential majority in a statement.

Change of insurance free of charge at any time

Among the key measures of the text, the possibility of changing borrower insurance free of charge at any time, and no longer just on the anniversary date. This provision will come into effect on June 1 for new contracts, and September 1 for others.

In accordance with the will of the Senate, the information obligations of policyholders on their right to termination are reinforced. Insurers will therefore have to inform them each year of the existence of this right and the terms of its implementation. “We considered that extending the right to cancellation without increasing the information of the insured was a sword stroke in the water: (…) we can now consider that all the elements are in place for the insurance market to borrower insurance is truly fluid“, declared the rapporteur for the Senate Daniel Gremillet (LR).

A health component more favorable to borrowers

Another novelty, the medical questionnaire is removed for mortgages below 200,000 euros and whose term occurs before the 60th birthday of the borrower.

the “right to be forgotten” period – which now allows former cancer patients to no longer have to declare their disease to their insurer ten years after the end of their therapeutic protocol – is reduced from ten to five years. People who have contracted hepatitis C are also affected. The signatories of the AERAS agreement (Insuring and Borrowing with an Aggravated Health Risk) will also be required to initiate negotiations by July 31, 2022 on pathologies other than cancer.

“Historic” advances

The LR president of the Senate’s Economic Affairs Committee, Sophie Primas, welcomed the progress “historical” who “come to put an end to a large number of very unfair situations”.Arrive at 5 years right to be forgotten”it’s a huge victory“, commented Isabelle Huet, president of the Rose Up association, this Thursday on franceinfo.

The French Banking Federation (FBF) assured in a press release its attachment “access to secure mortgages and a pooled insurance model for all”. She called out “maintain these goals with the new frame.

On the insurers side, Eric Maumy, president of the wholesale insurance broker April and member of the Association for the promotion of competition in creditor insurance (Apcade) welcomed a decision which will strengthen “the right of borrowers”. “The competition between traditional banking players, who charge prices two to three times more expensive, with external insurers, can only be favorable to the consumer”said Olivier Moustacakis, co-founder of

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