1.1 Definition and scope of the study
borrower's insurance is a crucial financial instrument, guaranteeing protection for borrowers by covering all or part of their monthly payments or outstanding capital in the event of certain unforeseen events. Events generally covered include death, total and irreversible loss of autonomy, permanent disability, temporary work incapacity (ITT) and loss of employment.
Between 2018 and 2022, the loan insurance market in France grew significantly, with an average annual growth rate of 5.19%. In 2022, this growth continued, but major challenges loomed on the horizon.
The loan insurance sector remains highly concentrated, largely dominated by banking institutions, notably the three main players CNP Assurance, Crédit Agricole Assurances and Crédit Mutuel, which hold 61% of the sector's market share.
However, despite the positive performance of recent years, the sector faces a number of major challenges. Rising interest rates, which triggered an international property crisis in 2023, have led to a decline in the number of loans granted. What's more, the introduction of the new Lemoine Law in February 2022 has altered the regulatory landscape, conferring more power and freedom on policyholders. Loan insurance players must therefore adapt to these major changes.
Loan insurance premiums are closely linked to demand for home loans, as well as to the duration of these loans, which continues to rise, reaching an average of 20.8 years in July 2023. In addition, they depend on the timing of these loans, which is closely linked to fluctuations in property prices and banks' policies on lending rates . Ultimately, the sector is highly dependent on demand, while benefiting from the banks' obligation to take out this type of insurance for their borrower customers.
In this ever-changing environment, loan insurance players will need to demonstrate their agility to cope with the worsening economic context and ever-changing regulatory requirements, while continuing to support the financial security of French borrowers.
1.2 Global market
The size of the global financial protection market was valued at $**,***.** million in **** and is expected to reach $**,***.** million by ****, at a CAGR of *.*% from **** to ****.
The financial protection market includes protection of payments and protection of mortgage payments (***).
Our market segment thus constitutes a fraction of the financial protection market, ...
1.3 The domestic market: Significant growth in the loan insurance market
the national creditor insurance market is estimated at **.** billion euros in ****, up *.**% in * year. Between **** and ****, the market grew by **. *%, representing average annual growth of *.**% over the period.
Total premiums on creditor insurance contracts France, ****-****, Million € Source: France Assureurs The market is segmented according to contract type: Death benefit contracts, ...
2.1 Increasingly well-insured French people
Percentage of borrowers covered by borrower's insurance France, **** - ****, % (***) Source: ****
The proportion of borrowers covered by borrower's insurance has risen steadily in recent years. Indeed, the proportion of borrowers insured for disability and death has risen by almost ** percentage points between **** and ****, to **.*% and **.*% respectively. The proportion of borrowers insured for ...
2.2 Home loan production in France
The loan insurance market is closely linked to the vitality of the real estate sector, and in particular to trends in the number of loans granted and the size of these loans.
In ****, contributions linked to mortgages will account for **% of total contributions, whereas in ****, they represented **% of total contributions. This ...
2.3 Applying for consumer credit
The creditor insurance market depends on the consumer credit market to the tune of around **%. Here too, premiums are based directly on outstanding loans, and follow their overall trend (***).
In ****, the rate of credit held by households stood at **.*%, the lowest level the Observatoire des Crédits aux Ménages has ...
2.4 Borrower profile
The profile of a French property borrower
The meilleurtaux.com study also reveals that the average first-time buyer has taken out a mortgage worth around ***,*** euros since last January
At national level, the average deposit required to obtain a mortgage is **,*** euros in ****, and the median deposit is **,*** euros. But these ...
3.1 A highly concentrated market dominated by bancassurance operators
the loan insurance market is largely dominated by bancassurance, which will capture nearly **% of market share in ****.
As a reminder: bancassurance is a financial institution that offers both traditional banking services such as savings accounts and loans, and insurance products including life, home and car insurance policies. It gives customers access ...
3.2 An increasingly risk-free market
Doubtful loans are loans or receivables for which there is a high risk of non-repayment due to the uncertain creditworthiness of the borrowers. They represent financial assets with the potential to cause significant losses for lenders or financial institutions. Prudent management of doubtful loans is essential to minimize financial risks.
3.3 The impact of the Lemoine law on the sector
*.The "right to forget
This allows borrowers not to disclose their medical history to their insurer once their medical treatment has been completed.
Previously, the time required to benefit from this right was long and complex, making it difficult for insurers to agree. With the Loi Lemoine, these time limits have ...
3.4 Distribution of players in the sector
The absence of a specific NAF code for loan insurance is explained by the wide variety of players, such as insurance companies and financial institutions, which operate in numerous sectors and offer a diverse range of services.
We have therefore opted to use NAF code **.**Z, which includes players such as ...
3.5 How loan insurance works
Here's how the process of taking out any type of loan insurance generally works, and how reimbursement is handled in the event of a claim. It's important to note that while underwriting isn' t always compulsory, it does become a frequent occurrence, particularly with large-scale, long-term mortgages.
4.1 The different types of creditor insurance
TAEA (***) is the rate applied by loan insurers when taking out a mortgage. It enables you to understand what proportion of an annual loan is attributed to insurance.
To determine this rate, insurance companies and banks take a number of factors into account, including :
Your age Your professional situation The term ...
4.2 Effective annual insurance rate and increase in gross premiums
The TAEA, which stands for Taux Annuel Effectif d'Assurance, is an essential indicator of the proportion of the cost of borrower's insurance in relation to the total amount of your mortgage.
as of January *, ****, insurers are obliged to include the APR, details of cover and the cost of monthly payments in ...
The creditor insurance sector is subject to numerous regulations specific to insurers' activities:
The Contrat d'Assurance Terrestre (***) Act: This law governs terrestrial insurance contracts, including motor insurance, home insurance, and other insurance related to real estate or movable property in France.
Solvency II law: This European regulation, which came into force ...
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L'étude de Businesscoot m'a permis de bien dégrossir le marché sur le plan macro, en résumant les grandes tendances, pour un coût acceptable ! Merci, cela a pu contribuer à appuyer mon projet!
Merci beaucoup Nicolas pour votre commentaire :)
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J'ai trouvé la plupart des informations recherchés. J'aurais toutefois souhaité trouver un peu plus de profondeur sur certains aspects
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Statistical study a little succinct but satisfactory and serious It lacks comparisons in terms of figures (assets, inflows, by product) between the global market (including bank-insurance) for asset management and that of the CGP CIF brokers
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Quickly obtained and appreciable synthetic approach. For all that, the content remains quiterelevant!