“The ax is facing problems and is never the right solution, but if the insurers themselves do not find a solution, we will have no choice but to keep this mandatory tax. 1.2 billion euros.” Asked about RMC on Friday, Bruno Le Maire Economy, Finance and Recovery the minister hardened his tone against insurers, accusing him of lacking support from the hotel sector, cafes and customers. foodservice (UNHCR) – most affected by coronavirus crises and blockages.
If they do not commit to freezing the contributions of multi-risk professional contracts by Monday, December 7, 2021, Bruno Le Maire threatens to pay a tax penalty of 1.2 billion euros. The amendment providing for this tax has already been approved by the Senate and may be approved by the Assembly in the coming days as part of the second reading of the draft financial law.
Very dissuasive tax
The threat posed by the minister is taken very seriously by insurers. This week they have multiplied the consultation meetings of the French Insurance Federation (FFA, which includes more than 260 insurances) and the discussions that have continued over the weekend are coming to an end. “The profession has a full interest in it, as this 1.2 billion euro tax, which accounts for 2% of annual turnover, is unmatched by the actions required around premiums,” says a good industry observer. he believes this tax is “ten times more expensive”.
Between the rock and the hard spot, several insurers contacted said they are already ready to agree to freeze premiums in the HCR sector next year. But we don’t expect a joint deal on Monday. “The FFA cannot make a price commitment on behalf of its members because that would be tantamount to a price agreement,” the Federation warned. So insurers should make the announcement individually. However, the Federation should not come empty-handed to Bercy. Before meeting Bruno Le Maire, his executive council should meet and carry out various additional actions. One way to show the minister to show that he has been heard is when the premium freeze is “minimal”.
Other concessions to come
This weekend, the three commitments under discussion are, according to our information, “close to the agreement,” according to the insurer. The first is to extend the freezing of multi-risk professional allowances to the HCR sector to all VSEs and SMEs eligible for the solidarity fund, which are also severely affected by the Covid-19 crisis. All companies targeted by the Solidarity Fund should also see their health and welfare contracts premiums frozen by 2021. “Two or three insurers have to believe it but we’re on the right track,” he assures us close to the discussions.
The last element being discussed in the discussion was that the insurance broker could see his area of competence extended to companies. Until now he was called upon to manage conflicts between individuals and insurers, then he would be called upon to intervene in the event of conflicts between SMEs and their company.