Canceling loan insurance: a right that borrowers still don’t know much about

Termination of loan insurance : The French are still hesitant

Published in April 2024, the APRIL barometer shows that French borrowers are reluctant to cancel and choose a loan insurance delegation.

Percentage of borrowers who report switching insurance in the past two years actually 7%. And those who plan to change contracts in the future represent only 12%. The figure also decreased by 5 points compared to the previous year.

However, borrowers who have chosen to cancel say they are very satisfied with their decision. Their satisfaction rate actually reaches 96%. ! Especially since the process of changing insurance seems to be the most fluid, as 42% of those questioned say that they had no problems with their procedures (i.e. 8 points more than in 2023).

Lenders who have too bad information have the right to cancel their insurance?

How can we explain why so few French people choose to cancel insurance? It is one of the most likely reasons their lack of information.

Only 31% of those questioned said they had been told by their bank about the right to change borrower insurance. However, this is a legal obligation. In addition, the older they took out their loan, the less policymakers say they were informed of their rights.

Let’s add that the category of French people familiar with Lemoine’s law – which allows loan insurance to be terminated at any time during the life of the real estate loan, as long as the condition of equality of guarantees required by their bank is observed – to be 27%. A figure down 6 points over one year. While there was a lot of communication about this law when it came into effect in 2022, it has now faded…

Finally, 59% of those questioned said they doubted that loan modification insurance could allow them to save money… It’s up to insurance professionals to convince them otherwise!