Insurance Code Reform: What Changed in 2025
Summary: Decoding the major legislative changes implemented since January 2025: impact on brokers, insurers, and policyholders.
Introduction
The reform of the Insurance Code, effective January 1st, 2025, marks a decisive turning point for the insurance sector in France. This extensive update aims to strengthen policyholder protection, modernize industry practices, and harmonize regulations with European developments. In this article, we provide a clear overview of the main changes and their consequences for brokers, insurers, and policyholders.
Background of the Reform
Faced with rapidly evolving risks, increasing digitalization, and the need for greater transparency, lawmakers sought to adapt the Insurance Code to address new market challenges. This reform is the result of several years of consultation between industry players, regulatory authorities, and consumer associations.
Main Changes to the Insurance Code
- Strengthened contractual transparency: Insurance contracts must now present exclusions, coverage limits, and waiting periods more clearly. A standardized information document is provided to each subscriber.
- Enhanced policyholder protection: The withdrawal period is extended to 21 days for individual contracts, and cancellation procedures are simplified, allowing termination at any time after the first year of commitment.
- New obligations for brokers: Brokers must now prove enhanced ongoing training and are subject to stricter requirements regarding advisory duties and conflict of interest management.
- Digitization of procedures: Electronic signatures and digital claims management become the norm, making access and follow-up easier for policyholders.
- Harmonization with European law: The Insurance Code now integrates the latest European directives, particularly on insurance distribution and anti-money laundering measures.
Impact on Brokers
Brokers are among those most affected by the reform. The focus on ongoing training aims to ensure quality advice and combat misleading commercial practices. Increased transparency obligations towards clients require a revision of internal processes, especially regarding documentation and complaint management. Finally, digitalization offers new tools to optimize client relationships but requires investment in digital solutions that meet regulatory standards.
Consequences for Insurers
For insurance companies, the reform means a redesign of standard contracts, adaptation of IT systems, and the implementation of internal training on new obligations. Harmonization with European law simplifies cross-border operations but also requires tighter control over compliance and data protection.
What Changes for Policyholders?
For individuals and insured businesses, the reform means enhanced rights and simplified procedures. Now better informed, policyholders benefit from clearer contracts and can more easily compare offers thanks to the ability to cancel at any time. Digitalization saves time in signing up and managing claims, while ensuring optimal traceability.
Outlook and Future Challenges
This reform is part of an ongoing adaptation dynamic within the insurance sector. Professionals will need to maintain active regulatory monitoring and continue investing in training and digitalization. For policyholders, vigilance remains necessary to fully understand their coverage and take advantage of the new protections.
Conclusion
The 2025 Insurance Code reform marks a major step forward for policyholder protection and industry modernization. While it requires adaptation efforts from professionals, it also presents an opportunity to strengthen trust and transparency in the insurer-policyholder relationship. We invite you to follow our blog regularly for all the latest news on wealth management and insurance.
