Hello everyone, in this week's insurance, banking and finance press review:

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• Abusive nature of a premium adjustment clause: the Insurance Mediator issues an opinion
• ACPR once again warns against the resurgence of fraudulent financial offers
• The AMF publishes an article on solidarity savings
• Property damage insurance for local authorities: the French competition authority publishes an opinion.
• Telephone canvassing: proposed law adopted.

Abusive nature of a premium adjustment clause:
the Médiation de l'assurance issues an opinion

January 25, 2025

The Médiation de l'assurance has issued an opinion on the unfairness of a premium revision clause.

In this case, a policyholder who had taken out a supplementary health insurance policy in 2007 noted increases in premiums without having given his prior consent. The insurer indicated that these increases had been notified each year via the due date notices, and that the simple payment of premiums constituted acceptance of these increases.

However, according to article R. 212-1 of the French Consumer Code, a clause allowing the insurer to unilaterally modify premiums is unfair if it does not provide for the insured to cancel the contract after being informed of the increases. The contractual clause, which did not specify the criteria for increases or the possibility of cancellation, was deemed unfair. As a result, the insurer was ordered to repay the sums wrongly deducted over the past five years.

The Insurance Code itself reiterates this provision, since the so-called "Châtel" law included a specific warning about the ability to cancel when sending out the expiry notice. (L 113-15-1)

ACPR once again warns against the resurgence of fraudulent financial offers

January 28, 2025

The Autorité de contrôle prudentiel et de résolution ("ACPR") alerts the public on the proliferation of fraudulent offers for credit, savings, payment services and insurance.

In 2024, 1,290 new unauthorized entities were added to its blacklist, including 205 in the last quarter. The majority of these scams involve bogus credit or savings accounts. In over 64% of cases, they are based on the impersonation of legitimate financial institutions.

The ACPR also highlights the rise in phishing attempts, some involving the fraudulent use of the names of the ACPR, Banque de France and Autorité des marchés financiers. In 2024, 106 fraudulent sites or e-mails were identified, compared with 61 in 2023.

In view of this growing threat, the ACPR advises consumers to check the accreditation of establishments on official registers (REGAFI, REFASSU, ORIAS) before committing themselves. If you suspect a scam, you are advised to report it on the Signalement Internet platform, and to contact INFO ESCROQUERIES on 0 805 805 817.

Finally, the ACPR encourages vigilance and provides educational resources on Assurance-Banque-Épargne Info Service to help the public protect themselves against these fraudulent practices.

The AMF publishes an article on solidarity savings

January 29, 2025

The Autorité des marchés financiers ("AMF") makes available to the public a detailed article on socially responsible savings, an investment that allows you to invest in projects with a strong social or environmental purpose. Not to be confused with Socially Responsible Investment (SRI), solidarity savings take two main forms: sharing investments, where part of the income is donated to associations, and solidarity investments, which directly finance companies or associations in the Social and Solidarity Economy (SSE).

The AMF also points out that these products, offered by banks, insurers and mutual insurers, can be subscribed to via a securities account, PEA, life insurance or as part of employee savings schemes. While socially responsible savings offer a way of reconciling social commitment with financial profitability, they do entail risks, particularly in terms of returns and capital guarantees.

Property damage insurance for local authorities: the French competition authority publishes an opinion.

January 27, 2025

Referred to by the Senate Finance Committee, the French Competition Authority (Autorité de la concurrence) has issued an opinion on the local authority property insurance sector. Its analysis highlights the marked concentration of the market, dominated by two main operators, and the low intensity of competition.

Despite the absence of any legal obligation to take out insurance, local authorities make extensive use of it to protect themselves against risks. However, they are encountering increasing difficulties: unsuccessful tenders, rising premiums and inflexible contracts.

Faced with this situation, the Autorité has issued seven recommendations to strengthen competition and improve contract underwriting. In particular, it encourages better preparation of public procurement contracts, more flexible procedures and a wider range of offers. These measures are designed to ensure that local authorities have fairer and more competitive access to insurance for their assets.

Telephone canvassing: proposed law adopted.

January 2025

Following the adoption of a bill designed to combat fraudulent use of public subsidies, the French National Assembly voted to ban telephone canvassing for home renovation and adaptation to disability and old age.

Against this backdrop, a group of MPs has tabled an amendment to extend this system to all forms of telephone canvassing. which proposes amending article L 223-1 of the French Consumer Code governing telephone canvassing. This amendment was adopted unanimously and completes the provisions of the proposed law. If this text is validated by the Senate - which is highly likely, since the amendment strictly reproduces the text previously adopted by the Senate in October 2024 - telephone canvassing of individuals will only be possible with their express consent.

It remains to be seen how this consent will be obtained. The amendment's motivation refers to the collection of consent within the framework of legislation protecting consumers' personal data. The impact of this legislation on the system already in place in the insurance sector through the provisions of the law of April 8, 2021, which came into force on April^1, 2022 and amended the provisions of article L 112-1 of the Insurance Code, will need to be carefully studied.

Very good week.