It’s a move that, on paper, should be good for your wallet. In any case, it was voted within the framework of the law of 16. August 2022 on emergency measures to protect the purchasing power of the French. From this Thursday, June 1, it will be legally binding to be able to cancel an insurance contract online, with three clicks, as soon as it can be entered into electronically on the company’s website.
A provision that applies to future contracts, but also to those in progress for car insurance, home insurance or even complementary health. But also for affinity insurance, those that we take out in addition to buying a product or service, sometimes even without really being aware of it. Companies that do not comply with this obligation can be fined up to 75,000 euros.
So no more unanswered emails, deaf dialogues on the phone or expensive registered letters when everything has been tried: the obstacle course that the termination of this type of contract sometimes represents for the French will, in theory, come to an end.
And by giving consumers the opportunity to switch insurance companies more easily, the public authorities give them the opportunity to compare prices, play against the competition and realize significant savings.
Energy and telecommunications contracts must follow
Specifically, insurance companies, pension institutes and mutual insurance companies must provide consumers with a free, permanent, direct and easily accessible function called “cancel your contract”. A similar formula can be used, but it must be “unambiguous” so as not to mislead the consumer.
Once the procedure has been initiated, the insured must state his first and last name, a means of contact, the contract reference, the reason for the termination and the date. A general overview of the conditions and consequences of this operation is then presented to the contract holder. After reading it, the insured only needs to click on “confirm my cancellation request”.
This functionality, currently imposed only on the insurance area, should be extended by decree to new services in the coming months. Energy (electricity, gas, etc.) and telecommunications (telephony, box, etc.) contracts will be affected.