Insurers floor price on purchasing power

Insurers still have a few days to phosphorus. According to our information, the Minister of Economy and Finance, Bruno Le Maire, asked a panel of insurers on Thursday to work in the next fortnight on proposals likely to help households better cope with the galloping inflation.

Even if it finds itself weakened after the second round of legislative elections, the government should soon present a bill to support the purchasing power of households. The executive wants insurers to support this project. Other sectors are called upon to mobilize. Bruno Le Maire has already met with the banks for their request to think about how to moderate bank charges.

Facilitate terminations

Bercy did not communicate after the meeting on Thursday. According to our information, several avenues of work have been discussed with the federations and representatives of major insurers to give households a boost. The exchanges are held in a peaceful atmosphere, with an organized round table, according to several parties concerned.

Anxious to encourage competition to pull prices down, Bercy would welcome progress on the termination of insurance contracts, for example car or home. One idea would be to facilitate cancellations in a few clicks.

The parties concerned have also raised the question of the abolition of the green card which allows you to display your car insurance. This theoretically proposed to reinject the savings made into lower prices. In practice, the impact on rates should be very small, but the measure is defended by insurers who see it as a welcome simplification measure.

Tariff moderation

Knowing that they were expected to moderate insurance prices, insurers did not fail to point out that they are facing an increase in the cost of compensation for home insurance against a backdrop of repeated natural disasters and rising prices in building.

Likewise, they recalled the regular increase in the cost of repairing damaged cars. To counter this phenomenon, we mentioned the development of second-hand parts (for reuse) via the establishment of a real distribution channel and a greater opening of the spare parts market.

The minister and insurers also discussed affinity insurance. These insurances, in particular associated with mobile phones, are regularly reviewed. Insurers have agreed, as expected, to give consumers more time to cancel a recently purchased contract. One way to tackle the problem of forced sales.

Affinity insurance

Health insurers, for their part, argued that they had seen their reimbursements increase with the 100% Health reform. In general, its long-time activists for tax relief on complementary health contracts.

Insurers and bankers have all the more interest in showing up since the new parliamentarians could be tempted to tax them, even if the government is not in favor of it.

Health insurers had been required during the Covid crisis to pay a tax of 1.5 billion euros, on the grounds that they had saved money on their healthcare reimbursements when the French could not go out to buy glasses or still go to the dentist.

Florence Lustman re-elected for three years

The president of France Assureurs, Florence Lustman, was unanimously reappointed to her position on Thursday and for three years, during the general assembly of the federation. Arriving to replace Bernard Spitz at the end of 2019, the former financial director of La Banque Postale found herself on the front line to defend the insurers who were accused during the Covid-19 crisis of discard to companies forced to lower the curtain. She also had to step up to defend the role of insurers in the management of care against the promoters of the creation of a “great security”. “Prevention of claims, acculturation to risks, financial education or even the professional attractiveness of the sector constituting strong areas of work”, indicated Thursday the federation bringing together nearly 250 insurance and reinsurance companies.

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