Competition from borrower insurance has improved significantly to the benefit of customers

"Creditor insurance is a market in which competition is on the march, as the legislator had wished in 2010", commented the CCSF, a consultative body where representatives of financial institutions and customers sit equally. as parliamentarians and representatives of trade unions.

Estimated at 9 billion euros, the French loan insurance market, highly coveted in a context of low rates which erode bank margins and complicate the task of raising insurance premiums, remains in fact largely dominated by banking establishments which generally take advantage of the signing of a loan to place their "house" credit insurance.

In 2010, the Lagarde law opened up the possibility for borrowers to choose insurance other than that offered by their bank. And several other laws passed subsequently attempted to promote more competition in the market, including allowing customers to change insurance every year.

"The results show that consumers are, today, the main beneficiaries, in particular with reduced prices and reinforced guarantees, and that, from this point of view, the objective of the legislator has been achieved", welcomes the CCSF, specifying that the rates of borrower contracts have experienced reductions ranging from 10 to 40%.

"The CCSF report confirms that it is a competitive market, on which the various offers, including those of bank insurers, are developing and evolving, in the interest of customers", reacted the French Banking Federation (FBF) in a separate press release.

And to recall its "constant objective of ensuring the maximum protection of borrowers and the solidarity of borrowers by pooling risks".

The CCSF, however, echoes "difficulties in the overall underwriting process highlighted by external insurers and brokers", which in their great majority attribute these obstacles to "the internal organization of banks for the processing of substitution requests" .

In addition, various deficiencies appear in the information sent to customers on the compensation conditions and on the products offered, points out the CCSF, which explains that it wants to organize working sessions "in the coming year" to progress in this area. .

This overall finding is based on a report produced by the independent firm ActImprov. And despite the sometimes strained relations between the protagonists of the sector, "the members of the CCSF validated the choice of ActImprov to carry out this study, drafted and approved the questionnaires, and provided quantified data which made it possible to display a very good level. of representativeness of the balance sheet ”, specifies the committee.