“The role of the TLC is to enforce the law by all concerned.The wider opening to competition is a fundamental move, and this is probably only the beginning … ” ” A large portion of consumers will benefit from lower prices but the players must pay special attention to the duty of advice.”
Here are also the words of the experts, about loan insurance
“Termination of the borrower insurance is now possible, both during the life of the contract and for new business.
This is a new context, to which all actors must adapt. And our role at the TLC is to enforce the texts, which exist on the subject, by all concerned actors whatever they are.
So, on this subject, I would like to make a contextual comment to say that the broader opening to competition that is the hallmark of this decision on borrower insurance is not something that appears by chance at the same level. the insurance of borrowers, it is a movement of substance. We saw it with the questioning of the clauses of designations, with the ANI, with the HAMON law in damage insurance.
It is therefore only the beginning and the continuation of a movement of medium long term, which will necessarily have the effect of calling into question a number of these mutualities and possibilities that insurers still had: to do their job by mutualizing the risks of their customers.
So be careful there are bound to be limits to this process, but I think it’s important to keep in mind that this is the backdrop for this decision on creditor insurance.
And since I evoked the insurance of the borrowers at the level of the duty of council: the effect of this decision will undoubtedly be an increased competition, perhaps even fierce between the brokers, the insurers, the bankers and their subsidiaries of insurance.
This increased competition will have a first effect:
That of lowering prices . Which will be to the benefit of all consumers.
But there will probably be a second one: when there is more competition, there is also more risk of deviance, of drifting on the part of this or that actor who profit from a market that opens. And so on the insurance of borrowers it will be necessary, as elsewhere, that all stakeholders is concerned, they are traditional insurers, brokers or bank-insurers, and they attach special importance to the duty of advice.
And then I would like to conclude
The insurance of the borrowers by also telling you that this evolution of the texts which apply to the insurance of the borrowers does not solve, far from without necessity, all the questions which we face: in terms of risks aggravated, EBC convention, etc. And so it will continue to work at the level of the profession, to change the conventions in this area and together, the actors involved take the necessary initiatives to have in this area the good professional practices. But also to avoid, because it would really be a pity, to have recourse to the law on the subject of the borrower insurance, subject on which there have already been many texts.