During the first lockdown linked to the health crisis triggered by the spread of Covid-19, the public authorities asked a number of actors to contribute to the national effort to support the French economy.
In his speech on April 13, 2020, E. Macron had also declared that "insurance companies must be present for this economic mobilization. I will be paying close attention to this .
The presidential word materialized in the commitment made by the world of insurance to inject 3.6 billion euros into the economy, in various forms: maintaining contracts as collateral despite delays in premium payments, contributing to the solidarity guarantee fund, deferring rents and massive investments in the hotel, restaurant and tourism sectors.
These efforts, which represent nearly 8% of the equity of insurance companies, have however been overshadowed by several series of events.
Overshadowed efforts
- It was initially the refusal to activate business interruption insurance for restaurant owners whose contracts did not appear to categorically exclude this risk that earned some insurers headlines in the press.
- Then came the decision of some other companies to distance themselves from their corporation by offering to cover operating losses, outside of any contractual commitment, which led the Prudential Control and Resolution Authority to "open" an investigation.
- Finally came the upward revision of insurance premiums for the year 2021 and, for some policyholders, the receipt of an amendment whose sole purpose is to guarantee to the insurer that financial losses related to the health crisis are indeed excluded.
In addition to damaging the image of insurers in the eyes of the general public, these events have finally convinced the public authorities to tighten the screws again.
An ultimatum to insurers
It is in this context that Mr. Bruno Lemaire has just issued an ultimatum to insurers: either they accept a freeze on premiums "for the entire hotel, cafe, and restaurant sector" by the beginning of next week, or he will have the Senate adopt a budget amendment establishing an exceptional levy of 1.2 billion euros.
The threat should bear fruit, but in the absence of more structural measures, it will also contribute to further price increases and a tightening of the conditions of the guarantee against business interruption losses.
Meanwhile, work on creating a specific insurance scheme against health risks continues to stall…
