Insurance company: Zoom on new upcoming regulations

Insurance brokerage reform

In force since April 1, 2022, law n ° 2021-402 of April 8, 2021 relating to the brokerage reform imposes new rules on insurance brokersto brokers in bank operations and payment services, as well as their respective agents. Indeed, in order to be able to set off at the ORIAS, these professionals now have the obligation to join professional associations approved by the Prudential Control and Resolution Authority (ACPR).

This measure concerns, initially, brokers and agents wishing to register for the first time at The ORIAS (organization for the single register of insurance, banking and finance intermediaries). In the absence of membership in a professional association, any request for registration or renewal will be systematically refused.

As for professionals already registered at the time of the entry into force of the law, they have a additional time to join an approved association. This approach could be carried out in January 2023, at the time of the renewal of their registration, unless a modification of their registration at the OIAs is necessary during the year 2022.

These associations approved by the ACPR fulfill two main missions:

• A role of Control of the conditions of access and exercise of the profession of broker with their members, complementary to the missions of the ORIAS. These checks relate to various elements: the honorability and professional capacity of employees, the financial guarantee, professional civil liability, continuing education, etc.
• A role ofSupport for their members in the exercise of their profession With, in particular, the provision of a mediation service.

Insurance brokers have the opportunity to freely choose their professional association, provided that it is indeed approved by ACPR for their activity, namely insurance intermediation.

Currently, the ACPR college has issued an approval to seven associations, after its session of March 22, 2022:

• CNCEF insurance
• The Insurance Intermediation Company (IAS company)
• Votrasso
• Anacofi
• Endya
• French Association of Intermediaries in Bancassurance (AFIB)
• National Chamber of Heritage Management Advice (CNCGP)

Natural disaster risk insurance evolves

Law No. 2021-1837 of December 28, 2021 pursues several objectives:

• Simplify the procedures leading to the recognition of the state of natural disaster
• Strengthen compensation and management of victims
• Improve the transparency of decisions made in the event of a natural disaster.
• Provide specific measures in the face of dryness-rehydration of soil, in the context of global warming.

New provisions that will have a significant impact on the Risk insurance for natural disaster. Thus, the compensation of the victims will now include emergency rehousing costs, as well as the costs of project management and architect. These measures, which should apply on January 1, 2023, must still be specified by a decree.

In addition, the people who were refused a insurance contract Because of the risk of natural disaster weighing on their property now have a remedy. Indeed, they will be able to contest the decision of the insurance company to the Central pricing office (BCT). The latter is able to impose the signing of the said contract on the insurer.

Concerning the Dryness-rehydration of soil riskspecific measures will be adopted in order to better compensate this type of claim. Thus, the compensation granted must make it possible to finance repairs in order to really end the existing disorders. In the event of a claims caused by drought, the insured will also benefit from better information at each stage of the expertise.

Last notable change: the Deletion of franchise modulations For people living in a town without a natural risk prevention plan (PPRN).

The new law on telephone canvassing

Since April 1, 2022, the phone canvassing is framed more strictly by article L. 112-2-2 of the insurance code.

Thus, it is now forbidden to Conclude an insurance contract by phoneunless it was first requested by the individual. The latter must also have a time to reflect before signing, which is fixed at 24 hours after receiving pre -contractual and contractual documents.

Furthermore, the insurance companies must systematically ask their prospects if they wish to exchange with them, at the start of the telephone conversation. In the event of a negative response, it is compulsory to put an end to the call and no longer recall the consumer. Finally, they no longer have the right to have an elderly or vulnerable person signed by telephone.

This new regulation is born in a particular context, while complaints linked to abusive telephone canvassing were becoming more and more numerous in the field of insurance. Consumer associations, which have been demanding stricter supervision for prospecting by phone for several years, have therefore won. The government thus undertakes to better protect the consumer consent in terms of insurance.

Failure to comply with these rules exposes insurance companies to sanctions. Thus, any abusive telephone can now be punished by a fine of up to € 1,500, or a fifth class ticket.

New rules for the integration of risks in terms of sustainability

In March 2018, the European Commission published an ambitious action plan aimed at redirecting capital flows towards more sustainable investments, in the context of climate change. Since then, insurance companies have been subject to an obligation of “transparency with regard to the integration of risks in matters of sustainability and taking into account negative improper incidences” (EU 2019/2088 regulations).

Two new European regulations today complete and deepen these measures, starting with the Regulation 2021/1 256. According to him, insurance companies publishing their main negative impacts on sustainability factors must adapt all of their internal processes, systems and controls in connection with these publications.

In addition, they are obliged to invest in assets which they can correctly identify, measure, follow, manage, control and declare the risks. They must in particular Take into account the risks in terms of sustainabilityin order to better manage climatic and environmental risks. Finally, they are required to take into account the preferences of their customers in terms of sustainability in the context of their investment processes.

As for Regulation 2021/1 257it concerns more precisely the integration of sustainability factors in the governance of insurance products. In other words, insurance companies and intermediaries who design insurance products must Take into account sustainability factors in the approval process of each product. This regulation also applies to other governance and surveillance systems implemented for the various products.

The obligation of collaboration between the ACPR and the AEAPP.

Law No. 2021-1308 of October 8, 2021 incorporates several provisions for adaptation to European Union law in different fields, from the environment to transport, including the economy and finance. Its objective is to remedy the problems related to free service and freedom of establishment. These weaknesses notably manifested themselves recently in the field of Construction insurance.

This is why the new law provides for a rapprochement between the prudential and resolution control authority And The European Authority for Insurance and Professional Pensions. Thus, the ACPR will now have to transmit certain information to the AEAPP as part of the granting of an approval to an insurance or reinsurance company, provided that:

• The insurance company provides that all or part of its operations will be based on freedom of establishment in another state or on the free service.
• Company activities are likely to generate significant effects on the host Member State market.

The increase in the minimum warranty amount for auto insurance

In order to adapt to inflation, the minimum cover ceilings provided for in Auto insurance contracts must be revised every 5 years. This is now done, with the publication of the ministerial decree relating to the coverage ceilings for automotive civil liability insurance (Jorf n ° 0067 of March 20, 2022).

Thus, the minimum warranty amount for material damage (which previously amounted to € 1,220,000) was set to € 1,300,000. Regarding compensation for damage to goods by the guarantee fund, this € 1,300,000 ceiling will also apply. Note that these new rules have come into force since March 17, 2022.

Correction reform, modification of the risk insurance for natural disaster, stricter supervision of canvassing… The regulatory news for this year 2022 is particularly rich for insurance companies.

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