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

• Loss of chance and life insurance: the Cour de cassation rules.
• The CCSF presents its report on developments in the status of sole trader.
• A change in case law: the validity of the substitution of a life insurance beneficiary is independent of the insurer's knowledge.
• Telephone canvassing: Senate adopts bill to combat state aid fraud.
• The European Supervisory Authorities (ESAs) are calling for vigilance in the face of rising geopolitical and cyber risks.
• Crypto-acitfs: EIOPA advocates strict capital requirements for insurers.
• RIS reform: Insurance Europe calls for simplification.
• Publication of the analysis of the French market for structured products conducted by the Joint Unit of the ACPR and the AMF
• AXA France includes a relocation guarantee for victims of domestic violence in its home insurance policies.

Loss of chance and life insurance: the Cour de cassation rules

March 26, 2025

In a decision dated March 26, 2025the Court of Cassation ruled that the loss of opportunity resulting from poor advice on life insurance cannot be assessed while the policy is in force.

In this case, a policyholder accused his asset management advisor of failing in his duty to advise him, after he had suffered substantial losses on unit-linked policies. Condemned on appeal, the advisor appealed to the French Supreme Court, arguing that the loss of opportunity could only be established at the time of surrender of the contract, when the losses became certain.

The Cour de cassation followed the reasoning of the wealth management advisor, pointing out that losses on investment vehicles only really materialize when the policy is surrendered. As long as the life insurance policy is in force, its net asset value is subject to change, making it impossible to assess the financial loss with any certainty.

The CCSF presents its report on developments in the status of sole trader

April 3, 2025

The Comité Consultatif du Secteur Financier ("CCSF") has submitted to the Minister of the Economy, Finance and Industrial and Digital Sovereignty its report on changes in the status of sole proprietorships ("EI") STATUS. The report, which is the fruit of reflection on the growing needs of this category of entrepreneur, highlights the challenges encountered in a constantly changing economic environment.

By the end of 2024, France will have 7.1 million AEs, a figure that's rising sharply.

The CCSF emphasizes that Law no. 2022-172, introducing this new status, has simplified procedures for IEs, while aiming to better protect their personal and professional assets. However, questions remain over certain aspects of its implementation, notably with regard to the separation of assets and access to credit. The report proposes a number of avenues for reflection, such as making banking services easier to understand, simplifying the process for businesses in difficulty, and extending certain accounting obligations to facilitate access to financing.

The CCSF also calls for greater support for individual entrepreneurs, to better understand their various needs and support their development in a complex economic context.

Case law reversal: Validity of life insurance beneficiary substitution is independent of the insurer's knowledge

April 3, 2025

In decision handed down on April 3, 2025, the French Supreme Court (Cour de cassation) made a major change in case law concerning the substitution of beneficiaries on life insurance policies.

Henceforth, the validity of this substitution no longer depends on the form of the modification, but solely on the certain and unequivocal expression of the contracting party's will, a condition assessed in a sovereign manner by the lower courts. The insurer's knowledge of this will is no longer a determining criterion for the validity of the modification.

Telephone canvassing: Senate adopts bill to combat state aid fraud

April 2, 2025

The Senate adopted, on April 2, 2025, the proposed law which prohibits telephone canvassing without prior consumer consent.

Although the National Assembly and the Senate agree on the principle of prior consent, differences remain between their versions of the text. A joint committee will therefore have to be convened to harmonize positions and finalize adoption of the bill.

The European Supervisory Authorities (ESAs) call for vigilance in the face of rising geopolitical and cyber risks

March 31, 2025

The European Supervisory Authorities (EBA, EIOPA and EFSMA) have published their update on the risks and vulnerabilities of the EU financial system. They warn of growing threats to financial stability, including geopolitical tensions, international conflicts and cyber risks, which call for heightened vigilance on the part of financial institutions and regulators.

In the face of these challenges, the ESAs recommend proactive risk management, enhanced cyber resilience and close monitoring of liquidity and currency risks. They also stress the need for rigorous data governance, responsible adoption of artificial intelligence and full implementation of the Digital Operational Resilience Regulation (DORA). Against a backdrop of high market volatility, financial players need to prepare for potential disruptions and adapt quickly to adverse developments.

Crypto-assets: EIOPA advocates strict capital requirements for insurers

March 27, 2025

The European Insurance and Occupational Pensions Authority ("EIOPA") has published its technical opinion to the European Commission, advocating a 100% capital requirement for all crypto-assets held by EU insurers, due to their high volatility and associated risks. This measure aims to standardize their treatment and ensure a prudent approach, while the current regulatory framework remains unclear.

The European Commission will examine this opinion as part of its review of Solvency II.

RIS reform: Insurance Europe calls for simplification

March 31, 2025

Insurance Europe calls for simplification of the Retail Investment Strategy ("RIS") currently being negotiated in Brussels. The association, representing European insurers, wants to lighten the investment process for consumers, while ensuring better protection and easier access to appropriate advice.

In particular, it advocates preserving insurers' freedom to design products and set prices, simplifying suitability tests and reducing the information overload for consumers.

Insurance Europe is the European insurance and reinsurance federation. Since 2011, it has been the successor to the Comité Européen des Assurances (CEA). It currently brings together 37 national insurance associations, including France Assureurs, representing some 3,200 European insurance and reinsurance companies, or 95% of European insurance premiums and one million employees. Insurance Europe has been registered in the European Register of Interest Representatives since 2010.

Publication of the analysis of the French market for structured products conducted by the Joint Unit of the ACPR and the AMF

March 25, 2025

Against a backdrop of strong growth in the market for structured products aimed at retail investors, the joint Insurance Banque Epargne unit (ACPR - AMF) has launched an in-depth analysis of this market.

The aim of this study is to map structured products marketed in France, both in life insurance and securities accounts, focusing on their characteristics, the dynamics of annual inflows and distribution channels.

AXA France: a rehousing guarantee for victims of domestic violence

March 31, 2025

From April^1, 2025, AXA France will include an emergency relocation guarantee in its home insurance policies. This coverage offers victims of domestic violence, and their children, secure accommodation for seven days, accompanied by legal, psychological and financial assistance provided by Juridica, AXA's legal protection subsidiary.

The scheme is based on a helpline to inform victims of their rights and organize their rehousing via a specialized unit available 24/7. This initiative is part of AXA France's long-standing commitment to combating violence against women, notably through its Elle's Angels sponsorship program, which has already supported over 2,000 victims in ten years.

Very good week.