Hello everyone, your insurance, banking and finance press review this week.

• New case study by the Insurance Ombudsman on the early redemption of a PER for the purchase of a principal residence  
• Dispute between a Belgian insurance company and a brokerage firm: commercial court issues summary order
• European Commission launches regulatory simplification to support business and the economy
• ACPR publishes its 2023 report on medical liability insurance
• Cyclone Chido in Mayotte: compensation of nearly 500 million euros

Médiateur de l'Assurance case study: early redemption of a PER for the purchase of a principal residence

February 25, 2025

The Insurance Mediator has ruled on an insurer's refusal to grant early redemption of a Retirement Savings Plan (Plan d'Epargne Retraite or PER) requested by an insured person for the purchase of his principal residence. The insurer justified its refusal on the grounds that there was no link between the sums requested and the purchase of the property, which had been concluded more than a year earlier.

In accordance with article L. 224-4 of the French Monetary and Financial Code, a PER can be released in advance for the purchase of a principal residence, provided that the funds are actually used to finance the transaction. In this case, the initial financing plan did not mention the PER, and the property had already been acquired by other means.

The Mediation officer thus confirmed the insurer's position, stressing that the exceptional redemption of a PER should not lead to over-financing after the purchase of the property. This case underlines the importance of anticipating the allocation of funds before any request for release.

Dispute between a Belgian insurance company and a brokerage firm: the Commercial Court issues an interim injunction

February 24, 2025

In a summary order issued on February 24, 2025the President of the Commercial Court of Boulogne-sur-Mer ruled that " the brokerage company had issued insurance certificates for motor risks in the name of a Belgian insurance company operating in France under the freedom to provide services, without being contractually authorized to do so ".

The President of the Court consequently ordered the brokerage company to notify the customers concerned that the Belgian insurance organization in question denies any commitment to them with regard to motor insurance cover. As a result, the certificates and vehicle memos issued by the brokerage company are considered invalid, and the risks in question are not covered.

The brokerage company has already lodged an appeal against this decision.

Against this backdrop, the Autorité de contrôle prudentiel et de résolution ("ACPR") and the Direction générale du Trésor ("DGT") have asked France Assureurs to ensure that its members diligently examine any requests for cover they may receive, and make every effort to offer insurance solutions in line with their underwriting policies and business activities.

European Commission launches regulatory simplification to support business and the economy

February 26, 2025

On February 26, 2025, the European Commission presented a set of proposals aimed at cutting red tape and simplifying the European Union's legislative framework, particularly for businesses. This initiative is part of a drive to modernize and adapt European regulations in order to foster a more fluid and competitive business environment.

These measures have several objectives, including :

• Make sustainability reporting more accessible and effective.
• Simplify due diligence requirements to encourage responsible business practices, while limiting the administrative burden on economic players.
• Stimulate new opportunities within European investment programs, by facilitating access to finance for companies committed to sustainable initiatives.

In addition, the text excludes around 80% of the companies initially concerned from the scope of the CSRD (Corporate Sustainability Reporting Directive), refocusing obligations on the largest companies. Other key measures include the postponement of the application of the duty of care, the elimination of certain major due diligence obligations under the CSRD, and a simplification of the green taxonomy criteria.

The European Commission states in a press release that it has made "an unprecedented simplification effort, reducing administrative burdens by at least 25%, and by at least 35% for SMEs".

These proposals will now have to be examined by the European Parliament and the Council with a view to their adoption.

Find out more about these two proposals here and here.  

Publication of the ACPR's 2023 report on medical liability insurance

February 19, 2025

On February 19, 2025, the Autorité de contrôle prudentiel et de résolution (ACPR) published on its website its annual report on medical liability insurance (MLI) for the 2023 financial year..

The study highlights a further concentration of the market around the four main insurers, accounting for 80% of written premiums, compared with 77% in 2022. Premiums will continue to rise (+5.6%), driven by healthcare practitioners and institutions, while coverage for producers and suppliers of healthcare products will decline.

Claims experience remains high, with a claims/premiums ratio of 92%, particularly in high-risk medical specialties.

The report highlights a tense underwriting situation and less cautious provisioning by insurers.

Finally, while the rise in interest rates had initially improved the sector's solvency, the fall observed in 2023 and the inflationary context have contributed to a rebalancing of trends.

Cyclone Chido in Mayotte: compensation of nearly 500 million euros

February 26, 2025

Cyclone Chido, which hit Mayotte on December 14, 2024, was one of the island's worst climatic events in a century. With gusts reaching 220 km/h, it caused extensive material and human damage, notably to homes, infrastructure and the Mayotte hospital.

Insurers estimate the total cost of claims at 494 million euros, divided between individuals (39%), businesses and local authorities (44%) and automobiles (15%). In view of the scale of the damage, they have extended the claims reporting deadline to 60 days, compared with the 30 days initially planned.

In a press release from France Assureursits president Florence Lustmana reaffirmed the insurers' commitment to supporting disaster victims and speeding up compensation payments.

Very good week.