French insurers announce anti-inflation premium cap and other measures

French insurance companies have announced measures to tackle possible knock-on effects of rising inflation, including a cap on car and home insurance premiums, and help for younger people.

The president of France assureurs, Florence Lustman, and Economy Minister Bruno Le Maire announced the measures after coming to an agreement following discussions.

France assureurs is the insurance industry federation in France. Mr Le Maire announced the measures at a press conference.

Read more: Healthcare, climate, cigarettes: France announces its 2023 budget

Prevention of ‘soaring premiums’

He said: “I have asked insurers to make an effort to limit, as much as possible, premium rises for 2022 and 2023.”

He said that the government had agreed, with consent from the insurance sector, upon “an insurance shield to avoid premiums from soaring in the next few months.”

Ms Lustman said that the profession would “take on the commitment” to make “its best efforts” within the vehicle and home insurance sectors.

But Mr Le Maire warned that sharp rises could not be ruled out for people who are responsible for accidents or repeat claims.

He said: “Obviously, if you are a driver who has had a number of collisions in the last few months, and your driving has been irresponsible, your car insurance premium will rise sharply.”

Support for young people

Insurance companies are set to present “offers” that will be presented to “specific people who need particular support”, such as “students and young jobseekers”, said Mr Le Maire.

The exact offers will be for the companies themselves to decide and present imminently.

Ms Lustman said that “a cheque for €100” will be offered on “car insurance for young jobseekers”. She also said: “We are ready to extend parental health contracts for these young people, so that they can also continue to receive care.”

No more windscreen insurance stickers

Another change is that drivers of vehicles, scooters, and motorbikes will no longer need to stick the usual green insurance stickers on their windscreen. This is because digital records have made the sticker obsolete.

Mr Le Maire said: “We are working with the Interior Minister Gérald Darmanin to abolish this little green sticker that you have to stick behind your windscreen and which shows that you are insured, and [working to make it] digitised.

”I hope that in the course of 2023, with Gérald Darmanin, we will be able to announce the definitive abolition of this green sticker.”

Mr Le Maire also said that the government was moving towards removing green stickers earlier this month.

Read more: Driving in France: The end of green windscreen insurance stickers

Ms Lustman added: “This document is no longer useful, because we have a digital file of insured contracts, which is more effective in combating insurance fraud.”

The digital file, dubbed the Fichier des Véhicules Assurés, can be consulted by police and gendarmes in the event that your vehicle is stopped or your insurance is searched.

The change will mean insurance companies will no longer have to send out 50 million stickers each year. Companies have been lobbying for the change for some time, saying that getting rid of the stickers will reduce fraud and simplify the insurance process.

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