Two important changes, one in June and the other in July are coming that will make cancelling insurance policies quicker and easier. The goal of these changes is to make it easier for the consumer to change insurer, promote competition and reduce the cost of insurance.
A new decree, set to come into force from June 1st will mean:
- Insurance contracts must be cancellable online.
- The online cancellation process should be as simple as possible, with a simple page and a ‘cancel’ button, or similar.
- Cancellation can take place online even if you did not buy the policy online or pay for it electronically. The insurance firm must be offering online contracts on the day the person wishes to cancel.
The aim is to make the cancellation achievable in three simple steps.
Step 1
After clicking on a ‘cancel your contract’ button, the client will be asked to enter the following:
- Surname and first name or company name
- Contract reference number and risk covered
- Reason for cancellation, to be chosen from a list including ‘cancellation on expiry’ and ‘other’
- The date of the cancellation.
Step 2
- The client will then be taken to a page summarising the information provided, to check it and if necessary, make changes.
Step 3
- Finally, the client will have to confirm their cancellation request by activating a button with the words ‘confirm my cancellation request’ or similar unambiguous wording.
The second change, which comes into force from July 1st, will enable people to end almost all insurance contracts at any time as long as one year has passed since the policy began.
From the new date, insurance providers will need to inform policyholders of the new premium amount for the year and remind them that they can cancel at any time. All contracts still have a 14-day cooling-off period, during which the policyholder can cancel.
The new rule will now be allowed for pet insurance, legal protection insurance l’assurance protection juridique, and personal accident insurance (‘garanties d’accidents de la vie’ (GAV)).
Cancellation after the first year is already allowed for multi-risk home insurance, car insurance, and health insurance.
The new rules will not apply to the following policies:
- Travel insurance contracts that last less than one month
- Disability or life insurance
- Long-term care insurance
- Seasonal contracts (school contracts, hunting contracts)
- Contracts for pleasure boating or for any motorised or non-motorised personal transport equipment.