INSURANCE INFO

French people still shirk life insurance

In April, life insurance raised 400 million euros. An amount away from the 1.38 billion euros placed on the Livret A. The pre-election wait-and-see attitude, the decline in the remunerations of the funds in euros and the forthcoming tax reform of the investment weighed.

Life insurance is struggling to find a new lease on life. In April, the net collection (that is to say, deposits less withdrawals) reached 400 million euros, says the French Federation of Insurance (FFA). This amount is certainly up from March when the sums deposited on the contracts were equivalent to those withdrawn, but it remains modest. And it is very far from the Livret A , whose return to favor in the eyes of savers was confirmed in April (1.38 billion euros of net collection, according to the Caisse des Dépôts). "April was a good month to date for life insurance. Over the last ten years, with the exception of 2012 and 2013, the net collection was between 2 and 5 billion euros, notes Philippe Crevel, director of the Savings Circle. "As a result, this year's result is in line with the trend of the last few months but is out of line with the long-term trend."

The French are waiting for the next tax reform of life insurance.

Since the fall of 2016, the French are somewhat shy about life insurance, which is their first savings product. This trend has strengthened since the beginning of the year: since January, they have invested 1.4 billion euros (net collection) on their contracts. At the same time, they placed 8.6 billion euros on their Livret A and LDD (both paid 0.75% net). Life insurance is always at a crossroads. In April, at the height of the election period, the wait-and-see savers continued to exercise caution . In addition, "they want to know more about the intentions of the new President of the Republic," said Philippe Crevel.. "However, says the economist, he said that the introduction of the 30% discharge levy would concern only payments after its adoption and the only insured with more than 150 000 euros outstanding. But households do not know how will be appreciated the threshold of 150,000 euros, by contract or by household tax. If the second solution appears the most logical, it could pose technical problems and confidentiality because it is the insurance companies that would pay the tax directly in case of recourse to the levy discharge.

Fall in the remuneration of euro funds in 2016

Other factors also weigh on the savvy behavior of savers vis-à-vis life insurance. First, the remuneration of funds in euros, drastically decreased in 2016(between 0.4% and 0.5% on average). Average earnings fell below 2% (before social security contributions). Only about ten funds in euros yielded more than 3%. And the underperformance fell below 1.5%. In addition, given the low interest rates that force them to invest savings in very low-paying bonds, a number of insurers dissuade savers from investing their funds in euro funds. For the moment, "the orientation of the savings collected towards the units of account (note: riskier investments, such as equities ...) is progressing step by step. In April, they represented 25.7% of the collection. Their weight has nevertheless increased by 10 points since the financial crisis of 2011/2012 ", notes Philippe Crevel.

Modest year

If savers agree to take a little more risk, they are not yet willing to rock mass savings on the euro funds. "Life insurance should therefore have a 2017 year spread, the change in its tax regime to be part of the draft budget for 2018 presented in September," says Philippe Crevel.

Life insurance remains undisputed, the first investment of households: at the end of April, its outstandings amounted to 1.653 billion euros (+ 4% over one year)!

Health insurance: seniors fear the use of their data

Faced with the proliferation of dematerialized tools, people over 55 fear that insurers will one day have access to their health data and use it to adapt their contributions to their state of health, according to a study.

The use of consumer data is central to the strategy of many Web players. Whether it's Gafa, acronym for Google , Amazon , Facebook or Apple . Or fintechs, these young shoots of finance, ready to use more information about their customers to better target their expectations. And offer them adequate products.

Tomorrow, banks and insurance companies may also be forced to make more use of their customers' data. What worries many seniors, especially in health insurance, according to a study conducted for France Mutuelle by OpinionWay with 1016 people, aged 55 and over.

Older people fear that insurers will one day have access to their health data and use it to adjust their contributions to their health.

Thus, a large majority of the seniors surveyed (62%) by OpinionWay express fears about the behavior of insurers and mutuals . "Faced with the proliferation of dematerialized tools, a majority (55%) fear that insurers and mutuals will one day have access to their health data and use it to adapt their contributions to their state of health", points out study. A large number of respondents (51%) also fear that insurers and mutuals are seeking lifestyle data and are using this information to adjust their contributions.

Men are more likely than women to fear such intrusive behavior (65% versus 58% for women). Younger seniors, more aware of new technologies and the dangers they may pose for privacy, are even more worried (67% of seniors under 70 versus 54% of seniors aged 70 and over) .

Many people polled by OpinionWay for France Mutuelle are also worried about the rise of robots and telemedicine. 42% of respondents fear that these new techniques are gradually replacing nurses and caregivers who move home . "Concerned about human contact, a large majority of seniors (71%) believe it important to interact daily with other people to stay healthy, " the study points out.

Mediation requests explode in insurance

The mediator of insurance, responsible for settling disputes amicably, received nearly 15,000 requests in 2016. The problems mainly concerned auto insurance, home and insurance borrower.

Individuals are turning more and more to the insurance mediator to amicably settle disputes with their insurers. Which avoids going to court. This trend has increased significantly in 2016: mediation requests jumped by 53% (14,803 requests) compared to 2015, according to the annual report of the Insurance Mediation . This unique mediation service of the insurance sector was set up in September 2015. The sharp rise in mediation requests "stems from increased information from insureds, from insurers in contractual documents and letters, and through better visibility of Insurance Mediation ", justify the authors of the report.

Requests are often linked to a refusal of compensation (31%) "or a poor follow-up, real or felt, the claim by the insurer," says the report. They are also frequently linked to a request for termination of contract not obtained (15%).

Life insurance was one of the main sources of contestation

As is very often the case, it is  home and especially automobile insurance that has by far posed the most problems (56% of disputes). "In cars (37%), the majority of the disputes were about the assessment of liabilities and damages," says the study. "The disputes relating to the housing contracts concern essentially the extent of the guarantees".

In life and health insurance (44% of litigation), life insurance was one of the main sources of dispute (23%)! The insurance mediator suggests to the subscribers to pay close attention to the drafting of the beneficiary clause, in particular in order to prevent the contract from falling into "escheat" after their death. Because they have not been able to identify the beneficiaries, the savings will not be paid.

Beware of the guarantees of the borrower insurer

Borrower insurance (linked to consumer and real estate loans) also poses a lot of problems (24% of claims). These contracts include an age limit. When it is reached, the borrower is no longer covered by the guarantees. But, the amount of his contribution does not decrease for all that. "Which raises a misunderstanding among the insured. However, according to the principle of risk pooling and because of the calculation of the contribution from the beginning taking into account this cessation, it is not possible to reduce the amount, "says the mediator. This clause is not always clear in the contracts. The  health insurance are also often challenged (19%), "it clearly reflects the economic situation," says the report of the mediation.

In 99% of cases, insurers follow the opinion of the mediator

Of the 56% of referrals last year, the majority of cases were resolved with the help of mediation and prior to the formalization of an opinion. "On average, 28% of the formalized opinions have given reason to the insured". And in 99% of the cases, the insurance companies followed the advice.

To avoid litigation, the mediator summed the insurers to an "effective questioning" of the insured to oppose a possible misrepresentation, more pedagogy on the consequences of driving while intoxicated or a reminder of the terms of termination.

Burglary: Are you well insured?

The easier access is to a home, the greater the risk of burglary. To limit the impacts two tracks are to dig: insurance and security of the property.

The summer holidays are coming and with them, the season of burglaries. The school is finished, the streets are empty, most of the neighbors are absent, if only for a few days. If the opportunity arises, some malicious people may try to enter your home. To avoid unpleasant surprises on return, there are some reflexes to have.

Membership fees, deductibles and exclusions

The more the house runs the risk of burglary, the more the theft guarantee of the home multi-risk insurance contract must be reinforced. You may want to consider paying a few more contributions to get better compensation. However, that is not enough.

Upon subscription, carefully study the conditions of application of the guarantees associated with your home insurance policy and in particular the deductibles. Indeed, the sums that remain your responsibility regardless of the damage are sometimes significant. As for the exclusions, it is on the one hand the circumstances that block the compensation, and on the other hand, the goods that are not covered. Your contract must be perfectly adapted to the configuration of your home and the equipment of your home. Do not neglect these two parameters to be sure to be properly covered in case of disaster.

The compensation limits

This is another very important part of the flight insurance study. The compensation limits correspond to the maximum amounts paid by the insurer. They are identified for each category of goods and allow to compensate for the theft of furniture, jewelery, household appliances, technological objects ... For each one, evaluate if the value of your goods is well under the ceiling and pay a particular attention on the questions of obsolescence present in the contract. If all these elements of your insurance do not seem satisfactory to you, ask your insurer or your broker to adapt them. A minor surcharge can sometimes guarantee you a contract perfectly adapted to your needs.


Strengthen security

All the insurers say it: the more the intrusion of the burglar is made difficult, the less it persists. If doors and windows resist too long, if an alarm goes off, he usually prefers to escape.

That's why they recommend, or even require, doors with 3-point locks. Some contracts go even further by mentioning the presence of "anti-grip" angles, an internal shield, a threshold bar. Also reinforce the doors of the outbuildings that communicate directly with the dwelling (for example, the garage). If there are window shutters, close them and lock them in case of prolonged absence. If there is a small window (WC or bathroom), have iron bars attached to them.

Good to know

A note about the thickness of the burglar-proof windows may be included in the insurance contract. In this case, it must comply to be sure to be well supported in case of intrusion.

Insurance of connected objects: useful or futile?

Connected objects experts estimate that by 2020, every French household will have about 30 of these objects. In this perspective, should we think about insurance?

The connected objects sector  is booming. However, at the same time, the risks of intrusion into devices or data theft are growing and are becoming less and less negligible. That's why the insurance offer is starting to be structured.

● Connected objects: what are we talking about?

Connected objects are devices (refrigerator, scale, vacuum cleaner ...), equipment (radiators, shutters, doors, windows ...) or accessories (bracelet, fork, toothbrush, glasses, pill, T-shirt ...). There are integrated layers of sensors and electronic transmitters that make them more or less "intelligent".

These elements allow them to get in touch with their user directly or wirelessly via a smartphone, tablet, computer or even a watch. From these connections, they deliver all kinds of information, analyze the data themselves to react by triggering an action, receive orders and obey the finger and the eye.

● What are the risks?

Even if all these objects are innovative, practical or fun, even if their promise is to make life easier or safer, they also pose serious security problems. Indeed, between the connected object and its official user, any intermediary can slip to "see everything", "hear everything", "save everything", "use everything".

This intruder is, most often, a hacker - a "hacker" (hacking). Via one or more connected objects, it can impersonate you to commit scams: fraud on the bank card, harassment, theft, sabotage of data and networks ... The "cybercrime" is developed in a proportional way to the objects set to the disposition of consumers.

● Should I make sure?

There are today so-called "cyber-insurance" offers. The guarantees offered include a preventive component, to regularly monitor the risks of connected objects and the means to secure the data collected. Added to this is online monitoring, to quickly detect leaks or frauds. Finally, in the event of serious damage, the insured can be compensated to the extent of its financial and / or psychological damage.

To find out if this type of offer may interest you, start by listing your needs. Review each of your items and their potential danger. It is a rational estimate of the risks you incur that should enable you to make the right decision.

If you think you need protection, start by comparing insurance offers. The contents of the guarantees, the price of the contribution, the compensation limits, the amount of the deductibles and the exclusions can vary considerably from one insurer to another.

Insurance: how to make a statement on smartphone

Downloadable for free on Google Play and the Apple Store, the e-statement auto application allows insured French to report their personal accidents from a smartphone or tablet.

If you have an accident in France and if the other vehicle is, like yours, registered in France or Monaco, you can now establish the report via a mobile application. It's called the self-report and here's how it works.

The accidents concerned 

The e-report can only be used for accidents that have caused only material damage to one or two vehicles registered and insured in France or Monaco. It can be written either by the two drivers on the same smartphone, in case of agreement on the responsibility and the circumstances of the accident, or each of his side on two different smartphones. Drivers can use both the smartphone version and the paper version.

Only the paper report can be used in case of bodily injury to drivers, passengers or pedestrians. It is the same in case of accident abroad, or in case of accident involving a foreign vehicle.

The 7 steps of e-observation 

The mobile application allows to complete the auto report in 7 steps. 

Step 1: Identify your insurer and enter your registration number.

Step 2: Using your registration card, you enter information about your vehicle.

Step 3: Check the different circumstances of the accident.

Step 4: You can draw a sketch.

Step 5: You can add additional observations.

Step 6: you can preview the statement in PDF and modify the declaration if necessary.

Step 7: You sign the self-report on the screen.

As long as it is not signed, you can go back to the previous steps and make changes.

Transmission to insurers

After signing, the information entered is secured and sent to both insurers. In return, you receive by SMS the confirmation of the taking into account of your declaration. Then by email, you receive the report amicable PDF version, printable if you wish.

The rest is the same if you sent your statement on the paper form. In view of the information provided, the insurers concerned assess the responsibilities, the compensation to be paid and possibly the penalty.

Accident in a car park: how does your insurance work?

If the highway code applies on public roads, what about private roads? If hanging on a parking lot, do you really have to make a statement? Do insurers automatically apply shared responsibility?

The Highway Code distinguishes between car parks and supermarkets and private car parks (in a residence, for example). So when you drive into a shopping center and park, the rules are the same as if you were parked on the street, along a sidewalk, or on a public parking lot.

The drivers involved in the accident jointly complete a report form. The front of the standard document must be written together. It is important not to neglect this step because after signing it, it will be forbidden to make any correction. Each one leaves with a sheet of the form.

If necessary, the back side can add details or reservations. These clarifications can only be made on the back of the document. The legal value of the information on the back without contradiction with the other party concerned is not retained. However, this can help insurers to specify the circumstances of the accident.


Hanging in a private parking

Parking is considered private if it is reserved for a specific population. It may be, for example, a private property, a co-ownership, a company or an administration. For these sites, it is not the rules of the highway code that apply but those of the rules of procedure.

If the latter provides that the Highway Code applies, that there is a marking on the ground and signs or that there are not any motorists must comply with the Highway Code (priority to right, turn signals ...). In the event of a collision, drivers and insurers will proceed in the same manner as on public roads.

If, on the other hand, the internal regulations provide for other rules, the insurers take them into account in determining the responsibilities of each. In the absence of specific circumstances, they share responsibilities equitably.

To know

Article R415-9 of the Highway Code stipulates that a vehicle entering the public highway from a private road is never a priority.