And the Senate, which enjoys a right-wing majority, remained, on Wednesday, its positions rejecting the possibility of changing the borrower’s insurance at any time, and is no longer limited to the anniversary date.
This key measure of the bill “to access the insurance market for the borrower in a more equitable, simple and transparent manner”, which was campaigned by Rep. Patricia Lemoine (Agger Group) and with the support of the government, was removed by the senators of the committee. In the circulation, the Senate confirmed its opposition by 78 votes to 199 against the various amendments, suggesting that he be reinstated.
The debate was lively between supporters and opponents. “Why have you emptied this progress of its essence?” asked Jean-Baptiste Lemoine on the government bench. , praising “a measure that will not cost the state a single euro.”
“It’s purchasing power, plus we don’t burn the cash register,” he said sarcastically to the eyes of LR Senators.
“Simplicity, common sense, is termination at any time,” Emmanuel Kappos (Independents) endorsed, while environmentalist Daniel Salmon suggested the right’s position in the Senate responds to the “bank lobby.”
Economic Affairs Committee Chair Sophie Primas (LR) replied: “We don’t work here for lobbyists.”
The consumer advocacy association UFC-Que Choisir also advocates termination at any time, “the only antidote to market hardening, and the opportunity to unlock €550 million per year in purchasing power”, which is the day-to-day theme of the presidential campaign.
The aim of the bill is to introduce more competition in the banking sector, in a position of strength in this area (88% market share), and insurance, in order to reduce costs to the consumer.
Since 2010, Lagarde’s law has allowed borrowers to choose insurance other than that offered by their bank. Several other laws have already worked for more competition, notably allowing customers to change insurance every year, but alternative insurers accuse banks, which own the majority of the market, of blocking it.
Criticizing “false information” and “caricatures,” Senate text rapporteur Daniel Gremlett (LR) asserted that “the competition already exists in this market and it is doing well.”
According to him, the new system will not create new savings, but it will risk punishing the elderly and the weak public.
Instead, the Senate planned to strengthen the insured’s information on the current law.
The insurer in particular will have an obligation to inform his client each year of his right to terminate as well as the various terms of execution and deadlines he must respect. The concept of “expiration date” will be clarified, by which the period for which the insured is authorized to terminate today is calculated.
In the evening, the Senate will continue to scrutinize the first reading of the bill and will discuss another major amendment introduced by the committee’s senators: the abolition of the medical questionnaire for housing loans under €200,000 which was about to expire before. Borrower’s 65th birthday.
If the rapporteur praised “unprecedented progress”, Mr. Lemoine warned of “easy solutions that are sometimes attractive at first sight but can have the opposite effect.”
Other points should also be discussed vigorously, including reducing the “right to be forgotten” period for cancers and opening up to new diseases in the so-called AERAS (Insurance and Borrowing with Aggravated Health Risk) agreement.
The borrower’s insurance market is valued at around €10 billion in premiums annually, and concerns about seven million homeowners with outstanding credit.
It covers various risks such as death, illness or disability, protecting both borrowers and banks from default.
Patricia Lemoine’s bill was adopted almost unanimously by the National Assembly in first reading. Once the text has been voted on by the Senate with its version, Representatives and Senators will attempt to find a compromise in a joint committee. If they fail, the National Assembly will have the last word.