During the first confinement 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.
During his speech on April 13, 2020, E. Macron had also declared that “insurance must be at the rendezvous of this economic mobilization. I will be attentive to it” .
The presidential speech took the form of the commitment made by the insurance world to inject 3.6 billion euros into the economy, in various forms: retention of contracts as collateral despite late payment of premiums , contribution to the solidarity guarantee fund, postponement of rents and massive investments in the hotel, restaurant and tourism sectors.
These efforts, which represent almost 8% of the equity capital of insurance companies, have however been overshadowed by several series of events.
Eclipsed efforts
- It was initially the refusal to make play the guarantee operating losses for the benefit of restaurateurs whose contracts did not seem to exclude this risk in a categorical way, which was worth to certain insurers to make the headlines of the press.
- It was then the decision of certain other companies to dissociate 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 " investigation.
- Finally, there was the upward revision of insurance premiums for the year 2021 and, for certain policyholders, the receipt of an endorsement whose sole purpose is to guarantee to the insurer that the financial losses linked to the health crisis are indeed excluded.
In addition to disturbing the image of insurers with the general public, these events have finally convinced the public authorities to tighten the screws.
An ultimatum to insurers
It is in this context that Mr. Bruno Lemaire has just issued an ultimatum to insurers: either they accept a premium freeze "for the entire hotel, café and restaurant sector" by the start of the week next, 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 rate increases and a tightening of the conditions of the guarantee against operating losses.
Meanwhile, work on the creation of a specific insurance scheme against health risks continues to stall...
