A year after the adoption of the Lemoine law, the neo-insurance company Assurly decided to analyze its impact by launching a quantitative study with 1,000 people. This study, carried out by consultancy, audit and expertise firm PwC, highlights the need to better communicate the law’s benefits with the French and shows that there is a significant potential market.
The French ignore the Lemoine Law
The results of the survey show that 66% of respondents know that they can cancel their insurance policy at any time to change it. On the other hand, the existence of the Lemoine Act and its terms are known to only 11% of respondents. In addition, less than every other person knows that the law has abolished the health questionnaire under certain conditions.
The results also reveal sociodemographic differences in knowledge of the Lemoine Law. Housewives and the youngest respondents (30 to 39 years old) have the least knowledge of the new law. Traders, managers and higher intellectual professions are the ones most aware of the new provisions.
Finally, the study highlights an inverse relationship between age and willingness to switch insurance, with the oldest most likely to want to switch insurance.
The French are ready to switch insurance companies if they find it cheaper
Almost half (48%) of respondents feel their mortgage insurance is too expensive and the majority (55%) are considering changing it. The survey also shows that the fact that many policyholders do not know how to switch insurance deters them from choosing a new policy.
The most important criterion that motivates policyholders to switch insurance is price for 87% of respondents. This criterion comes far ahead of “a richer offer” and “better customer service”.
It also appears that the speed and ease of change could encourage more people to take advantage of the benefits of the Lemoine Law.
The Lemoine Law in practice
The Lemoine Act wanted to make mortgage insurance more accessible, simpler and more transparent. It was designed in such a way as to increase consumer purchasing power without harming public finances by liberalizing the borrower’s insurance market.
This allows customers to switch insurance companies and take out individual contracts that better suit their risk profile. It reduces the barriers to insurance opportunities for the most vulnerable people and saves 5,000 to 15,000 euros per insured.
What the Lemoine Act Changes
- Policyholders may at any time terminate their borrower insurance contract in order to take out a new contract with equivalent guarantees;
- The right to be forgotten is shortened to five years instead of ten, following the therapeutic protocol for cancer and hepatitis C;
- The health questionnaire is removed under two conditions: the insured amount must be less than 200,000 euros and the credit must end before the insured reaches the age of 60;
- Borrowers must have clear information about their contract: amount for contributions over eight years, date of termination and expiry of the contract.
