On Oct. 15, FR CB issued opinion on improving contract information.
FR CB said Consultative committee of financial sector (CCSF) had unanimously adopted an opinion on funeral insurance contracts for better readability & stronger guarantees.
Applies to contracts taken out individually or part of group with individual membership, based on whole life guarantee, except savings and temporary guarantee contracts.
On Jul. 5, 2024, FR GVT asked CCSF to analyze contract terms and assess how these could better meet policyholder needs, particularly through improved information.
Findings included pre-contract lack of clarity, due to inappropriate funeral contracts regulations; CCSF has developed standardized examples to aid offer comparability.
Insurers have undertaken to include these tables on websites to help policyholders understand how contracts work, particularly likely cumulative contribution amounts.
Also found: instances where insured contributes well beyond guaranteed death benefit, with waiting times up to 2 years; inappropriate exclusions; contract clause opacity.
CCSF said information must also be strengthened in relation to Association for the management of information on insurance risk (Agira) funeral contract search system.
The opinion was adopted at the end of the plenary meeting held on Oct. 8, 2024
Next Steps
Insurers have committed to implement changes to address these issues Jul. 1, 2025.
Assessment of opinion's application will be conducted 1 year after its implementation.
Also committed to consult on Agira, and implement software for automatic connection with information systems of notaries, local authorities, funeral directors, etc.
