About 190,000 deaths a year are covered by these contracts, or about 30% of deaths in France.
(AFP / CHARLY TRIBALEAU)
The Financial Services Advisory Committee (CCSF) announced on Tuesday 15 October that sellers of funeral insurance contracts have committed to improving information for subscribers and better meeting the funding needs of policyholders by 1 July 2025.
The CCSF adopted a statement on funeral insurance contracts after noting a
“lack of overall readability of pre-contractual information provided to subscribers
particularly because of the inappropriate nature of the rules applicable to funeral contracts”.
The Prudential Control and Resolution Authority (ACPR) and the insurance broker “have noted on several occasions the difficulties presented by funeral insurance contracts”, particularly “situations where the insured may contribute well in excess of the guaranteed death benefit”.
“sometimes too long waiting times”
lasting up to 24 months and “inadequate legibility” of the contract’s function, the CCSF states.
Makes it easier to compare offers
The professionals are required to set up “example tables on the organizations’ websites, to provide a better understanding of how funeral insurance contracts work and, if necessary, facilitate the comparability of offers” and to “facilitate accessibility on their website”, according to the CCSF.
They also committed to
“limit the duration of the waiting period to a maximum of 1 year”
,
“limit contractual exclusion clauses”
and to
“systematically propose an alternative offer for lifetime payment of contributions,
with at least one option for temporary contributions” to be transparent in terms of “cumulative contributions over time”.
“A review of the correct application of the opinion will be conducted one year after its effective implementation,” CCSF adds.
Whole life funeral insurance contracts, individual or group with individual membership, are widely underwritten. Their number rose to 5.3 million by 2023, and around 190,000 deaths a year are covered by these contracts, or around 30% of deaths in France.
53% of these funeral insurance contracts are sold over the counter, 27% in insurance networks and 20% by funeral operators.
