France Fintech welcomes the decision of the Constitutional Council which confirms the possibility of renegotiating loan insurance

Following a priority question of constitutionality (QPC) filed by the French Banking Federation (FBF) on October 12, the constitutional council has just confirmed for borrowers the possibility offered by the law "Sapin 2" to terminate their insurance contracted for a mortgage each year.

This contested provision resulted from the Bourquin amendment to the Sapin 2 law which established the principle of annual termination, as well as its retroactivity.

The Constitutional Council finally ruled that all the contested provisions were indeed in conformity with the Constitution and that the legislator had indeed pursued a general interest, without such renegotiation affecting the economy of the contracts already concluded. By thus confirming the possibility of renegotiating the 6 million borrowers who already have a group insurance contract, the council's decision gives full legal effect to the renegotiation so that it does not only play for the future.

By definitively putting an end to the principle of captive clients, the constitutional council has just rendered an important decision in law. It will strengthen consumer protection but above all boost innovation in financial services, which France Fintech welcomes. This decision in fact removes the major legal uncertainty that weighed on insurtechs called upon to invest all insurance segments in France.

For Alain Clot, President of France Fintech: “The decision of the Constitutional Council is foundational. We are delighted that this decision allows all borrowers to have access to borrower insurance under the best conditions while promoting the development of insurtechs, an already booming sector. "

For Jehan de Castet, President of Fluo and member of the France Fintech board: "The measure thus validated makes the borrower insurance contracts of 8 million households potentially terminable, which can only promote healthy competition between banks, insurers and insurtechs, for the greater good of the consumer who will benefit from 500 euros of savings on average per year. "