Why the Lemoine Act Has Had a Significant Impact on Customers
MetLife France, which has specialized in individual life and health insurance and credit insurance for 50 years, has released the results of its Loan Insurance Barometer, conducted in partnership with CSA.
The study, conducted by telephone with 200 intermediaries from July 11 to 28, 2023, focuses on the impact of mid-year termination on the loan insurance market, one year after the Lemoine Act took effect.
The study's conclusions are as follows:
From the retailers' perspective:
- 51% report an increase in policy cancellations.
- New: 56% of distributors have implemented sales initiatives to boost this activity, primarily within their customer base.
- The main obstacle is banks’ reluctance to allow their customers to cancel policies (80%), followed by complex procedures (46%).
- For 29% of distributors, loan insurance cancellations account for more than 75% of their business.
Impact of the Lemoine Act on duration:
- 73% of distributors believe that insurance substitution will increase over the next 2.2 years.
- The main reason cited is the backlog of loans to be substituted, cited by 62%.
From the perspective of policyholders:
- 57% of brokers have noticed a change in customer behavior since the Lemoine Act took effect.
- The average age of policyholders looking to switch is between 35 and 45 (68% of customers).
- 94% of policyholders canceling their policies have a policy value of €400k or less.
- 56% of policyholders cancel within the first year of their insurance policy taken out through their bank.
The Lemoine Act has had a significant impact, marked by a change in customer behavior. On the distributor side, the number of policy cancellations has increased, though the extent varies depending on the sales efforts made. The law has also encouraged certain intermediaries to promote loan insurance, making it easier to switch policies. MetLife emphasizes its commitment to simplifying the cancellation process and supporting intermediaries in their sales efforts.
