French borrower‑insurance reform encounters implementation snags, but insurers vow to improve access for high‑risk mortgage applicants
Executive summary: The Consultative Committee on the Financial Sector issued an opinion on the application of the 2022 Lemoine law, noting difficulties in its implementation but reporting that insurers have committed to making further efforts. The law aims to widen access to mortgage borrower insurance for people with specific health pathologies; implementation problems could limit housing‑finance inclusion and affect pricing in the insurance market.
Who is involved: French Consultative Committee on the Financial Sector, insurance companies, mortgage lenders, policymakers, and borrowers with health‑related risks.
Likely next: Insurers will detail concrete measures to improve compliance; regulators may monitor outcomes and consider additional guidance or adjustments if shortcomings persist.
The Consultative Committee on the Financial Sector reported that applying the 2022 Lemoine law—which seeks to ease mortgage insurance for borrowers with certain health conditions—has run into practical obstacles. Insurers have responded by pledging additional efforts to meet the law’s goals, signalling a willingness to adjust underwriting practices and outreach. While the statement acknowledges difficulties, it also suggests that market participants are motivated to avoid regulatory penalties and preserve access to housing finance. The outcome will depend on how quickly insurers translate promises into concrete changes and whether regulators deem the efforts sufficient.
Timeline
- — Assurance emprunteur : des difficultés dans l’application de la loi Lemoine, mais les assureurs s’engagent à faire des efforts (Le Monde — Économie)
Analysis — what this means
Likely next events
- Insurers publish specific action plans to ease underwriting for high‑risk borrowers
- If problems continue, legislators could consider amendments to the Lemoine law
Sectors affected
- Insurance
- Mortgage lending
- Housing finance
Regulatory implications
- Enhanced supervisory monitoring of borrower‑insurance accessibility
- Guidance revisions on risk assessment for applicants with health conditions
Historical parallels
- 2015 Hamon law allowing borrowers to switch mortgage insurance contracts
- 2010 Lagarde law improving transparency in consumer credit
- 2018 European Insurance Distribution Directive (IDD) impact on product suitability