The sale of insurance subject to the scrutiny of the AMF

La vente d’assurance sous la loupe de l’AMF

Valérian Mazataud The Duty
The AMF has published its analysis report of disclosure 2016-2018 insurers.

Higher premium and refusal increased compensation… The financial markets Authority (AMF) finds significant differences in the distribution of insurance products by car dealers and tightens its measures of intervention accordingly.

The AMF has published its analysis report of disclosure 2016-2018 insurers. The data collected from 20 insurers are on the products offered by car dealers, in the form of replacement insurance and life assurance, illness etperte of employment of a debtor. The Authority finds that :

compensation levels “of concern” to the distribution network ;

a value added limited for the consumer in the case of the product replacement insurance, ” because of the high price paid in the distribution network of dealers,” ;

a refusal rate of claims is high for the product’s life, health, and loss of employment ;

problems related to the reimbursement of premiums in case of cancellation of the policy.

In its report, the AMF figure at $ 425 million, the premium received by the automobile dealers in 2018. It also measures the value of the average premium of a insurance replacement from a dealer is greater than 62 %, or about $ 750, with the average value of the premium for an identical product subscribed through a network of representatives certified.


It is the refusal rate of compensation for a product sold by the dealers in life insurance, health and loss of employment.

For life insurance, health and loss of employment, claims for a product sold by the dealers were rejected in 29% of cases. Comparing this product with group disability insurance, the AMF is a measure of claims rejected in 5% of cases in the insurance of short duration, which is similar to the product offered by the dealership — from 12 % in insurance long term.

“Having now a more accurate portrait of the market, the Authority will further intensify its interventions in order to correct bad practices persistent,” she wrote in a press release. The AMF also announces intervention measures four major objectives :

offer consumers, through dealers, insurance products have an added value similar to that of comparable products currently offered by the conventional distribution network ;

require practices to pay that promote the fair treatment of the consumer ;

continue the initiatives for education and improving disclosures to consumers ;

have the effect of a truly deterrent to the bad sales practices.

The exercise carried out by the AMF brought together around a table representatives of insurers and dealers associations, bringing together more than 2500 merchants. In the latter, it was said Wednesday to take note of the publication of the report. While recalling a dialogue and collaboration are constant, they deplored the fact ” that the portrait of the industry brushed today by the Authority does not include the year 2019, during which unprecedented resources have been invested by all the actors involved, to comply with the demands and timeline of the Authority, and to deploy the new measures training of staff assigned to the distribution and their managers, on the regulatory framework governing “. They notably insisted on the issuance of a code of ethics and ” the entry into force in June 2019 with the new regulations on alternative methods of distribution of insurance products “.

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