How insurers will adapt to the end of the health questionnaire for borrower insurance

This is the last straight line for insurers before the small revolution announced on the mortgage insurance market, with the end of health questionnaires on mortgages of less than 200,000 euros.

From June 1, borrowers will be able to change insurance for their mortgage at any time but, above all, new borrowers will no longer have to complete a health questionnaire for loans of less than 200,000 euros. And this last measure is actually a real headache for alternative insurers who are struggling to define their strategy.

How to remain competitive at a time of greater openness to competition? Alternative insurers only have 15 days left to find a solution and win their fight to break the quasi-monopoly of banks on borrower insurance. Because the disappearance of the health questionnaire for credits of less than 200,000 euros will have consequences. Insurers will have to pool risks, in other words increase the prices of all borrowers on these loans, including even for people in good health, even if it means cutting back on their competitive advantage. The comparators thus expects an increase of 8 to 25% in prices on these credits of less than 200,000 euros.

To adapt to this change, 3 scenarios are possible. The first is simple but dangerous: raise tariffs. The second, for the actors who refuse to display prices potentially higher than those of the banks, a minority of them think squarely about no longer insuring the borrowers concerned by these loans at less than 200,000 euros, even if it means giving up nearly half of the mortgage market. Finally, third scenario, a majority of insurers are preparing new offers based on other criteria: age, socio-professional categories, smoking, sport at risk. No need for the health questionnaire to know these elements and adapt its pricing policy.

By Marie Coeurderoy, edited by JLD

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