Loan insurance: Crédit Mutuel eliminates surcharges and exclusions

Crédit Mutuel announces that it is eliminating overbilling in borrower insurance for its historical customers with health concerns. An investment of 70 million euros for the mutualist group which intends to win over and retain its customers.

“We are eliminating the health questionnaires for all loyal customers!”.

It is in these terms that Nicolas Théry, president of Crédit Mutuel, announced the good news for these customers. And dismissed in their goal the insurers who seek to reconquer the market of the bancassurance by the individualization of the tariffs.

Starting today for new borrowers

The measure applies as of today for new borrowers and, from December 1, for customers of Crédit Mutuel and CIC who pay additional premiums.

“I am struck by invisible or barely visible discrimination,” argued Nicolas Théry. In our status as a company with a mission, we looked for places where there is concern of inequality ”. And to be delighted that not one of the members questioned is opposed to the project.

The beneficiaries must be loyal customers, that is to say customers with income domiciled with Crédit Mutuel or CIC (not in banks affiliated with Arkéa). Up to 62 years at most. And this, for at least seven years, for a loan of up to 500,000 euros, or 97% of loans for main residence made by the mutualist group.

Usually premiums multiplied by 4 or 5

It’s not nothing ! Today, patients with cystic fibrosis, AIDS or diabetes can see their insurance premiums quadruple or fivefold and, as a result, be denied credit.

The annual cost of these “gifts” is estimated at 70 million euros, including 30 million for customers who will benefit from them from the 1^is December by canceling surcharges and / or exclusions and around 40 million on new loans.

But for the group running behind the Agricultural credit and BPCE, the expense can be justified. Third retail bank in France (by deposits and loans) and seventh insurer, Crédit Mutuel is in conquest! It is gaining market share year after year. And it has a particular reputation for retaining its clients when they want to borrow against brokers who profess to send prospective borrowers to other banks.

Medical progress

Of course, by remaining the last not to adapt a price to the risk of the customer, the group runs the risk of ending up with more difficult cases than the French average. But in addition to the difficulty of saying no to its customers, the measure also takes into account the progress of medicine: the treatments have considerably lengthened the life of patients suffering from these chronic pathologies.

Finally, the group does not refrain from continuing to segment prices according to age and smoking.

All in all, the sums at stake do not differ from the sums spent by banks on advertising or welcome gifts: the new mobile banks have opened nearly 10 million accounts in nearly five years and online banks nearly 9 million. with welcome bonuses of 50 to 130 euros to win new customers.

In the midst of the debate on annual termination

This gesture is also a political message, while the debate on the annual termination of borrower insurance is raging in the National Assembly. On the one hand, some deputies supported by insurers regularly put on the table a bill (PPL) allowing infra-annual termination to promote competition and therefore the individualization of tariffs.

And on the other, members of parliament who proposed an amendment as part of the finance law for 2022 in order to create inclusive borrower insurance by banning health questionnaires to all.

The end of health questionnaires?

An amendment drafted in the spirit of the Evin law which provides for additional deaths without a health questionnaire. Since then, the tariff has been completely shared. Some borrowers eliminated from credit by loan insurance get by by substituting their complementary health for borrower insurance. A technique to be encouraged in the absence of extension of the Evin Law to complementary health.

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