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price increases, the right to be forgotten… The consequences of the Lemoine reform

The Lemoine Act, which aims to ensure fairer and simpler access to borrowers’ insurance, went into effect on June 1, 2022. A National Assembly report released Wednesday, November 9 looks back at the implementation.

For many borrowers, as for insurance companies, the law of 28. February 2022 on fairer, simpler and more transparent access to the loan insurance market, also known as the Lemoine law, changed a lot of things. This reform allows for the option to cancel your mortgage insurance at any time to take advantage of a competing offer that is cheaper and/or with better guarantees, when previously you had to wait each year for the anniversary date of your contract to be able to change it.

Property credit: savings, termination, questionnaire… What changes for loan insurance

A new feature will be launched on June 1 for new contracts and September 1 for ongoing ones. Among the other changes introduced by the Lemoine Act, the end of the health questionnaire for some borrowers, but also an extension of the right to be forgotten for certain pathologies. For example, since 1 March the duration has been reduced from 10 years to 5 years for people who have suffered from cancer or hepatitis C.

Banks and insurance companies play the game

Four months later, are promises being kept? A report from the National Assembly, published on Wednesday 9 November, underlines this the application of the right to cancel borrower insurance is generally satisfactory. The heard parties agree to recognize that banks and traditional insurance companies have almost systematically and without notable exception implemented the procedures and technological adaptations necessary for the application of the law correctly, the report notes. The same applies to the development of the AERAS Convention and the right to be forgotten, as the rapporteurs believe that these implementing provisions have not given rise to difficulties.

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An increase in the prices of certain contracts

The table is A little darker regarding the end of the health questionnaire. Its abolition of policyholders who borrow up to 200,000 euros and end up repaying their credit before their 60th birthday already raised questions, particularly about the response of insurers obliged to insure the blind. People who have a Lemoine contract may want to pay a little more, feared Astrid Cousin, spokesperson for the insurance comparison Magnolia.fr, interviewed by MoneyVox. The National Assembly laments in its report that 75% of the so-called alternative insurance companies have the choice to increase their rates on the deletion part of the health questionnaire for loans of less than 200,000 euros. According to this report, rates have increased by 20 to 25% on these contracts.

Home loan: up to 40% increase in loan insurance prices since June 1?

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