One year after the start of the Covid-19 pandemic, the time has come for the first assessments. What consequences has the crisis had on insurance? Have the membership fees been lowered? Have the contracts adapted? What can policyholders expect from their insurance coverage in the future?
- In short: Covid-19 and insurance: time for analysis … then for change?
- It has been a year since we officially live with the Covid-19 pandemic and its consequences;
- This unprecedented crisis hit the whole world, forcing populations to adapt;
- Many restrictive measures have been deployed to limit the spread of the virus;
- Consumer habits have evolved, with more occasional trips and the democratization of teleworking;
- Faced with the health crisis, the role of insurers has been widely questioned, as has the relevance of certain types of insurance contracts concerning our new reality;
- To date, many observers believe that the time has come for analysis. Nevertheless, the French insurance sector could well undergo some future metamorphoses in reaction to the crisis;
- For now, the trends are roughly the same: prices are increasing and contracts have not changed;
- But, for certain types of insurance, the question arises: should we review home insurance when more and more French people resort to teleworking? What protections should they benefit from?
One year later: has the Covid-19 impacted our insurance contracts?
In this month of March 2021, we are celebrating a sad anniversary: we have been living to the rhythm of Covid-19 pandemic and that our lives are completely turned upside down by this unprecedented health and economic crisis. Across the world, societies have been forced to adapt to this new reality. Everyone had to adjust to the new imperatives and restrictive measures intended to protect us.
So, the Covid-19 has changed our habits, our way of living on a daily basis. Implementation of generalized teleworking when possible, limitation of travel, reimagining of our leisure activities and our meetings thanks to digital technology: all this has ended up being essential. In terms of insurance, the use we make of the goods covered is of central importance. Thus, from the first confinement, the insured asked a legitimate question: what impact will the health crisis have on insurance contracts? Will they change, evolve? Also, if insurers save money, will prices drop accordingly?
Invited to the radio show the “Great Real Estate Meeting” at the beginning of March 2021, Julien Fillaud, Managing Director of Hyperassur, was asked about all these questions, and in particular on home insurance. For him, insurers are still ” in analysis phase ”Regarding the Covid-19 pandemic and its consequences for the sector. He argues that, so far, things haven’t really changed but are bound to do. The various phenomena that we have seen appear (teleworking, trips to second homes, moves to the provinces, etc.) could influence future rates, or even the contracts themselves.
With a few exceptions (with the rate freeze put in place by some insurers, like Kovers), things should therefore remain more or less the same: in 2021, insurance will cost more globally. If consumers want to benefit from lower prices, they will have to do the legwork themselves. Nothing beats a insurance offer comparator to find the best one, at a reduced price.
Auto insurance: playing the competition is essential!As Mr. Fillaud reminds us, the use of vehicles has changed significantly in 2020. Nevertheless, they must be insured even if they are not running. Since no decrease in prices is to be expected for the moment, it is up to the insured to directly ask his insurer if his contributions will decrease or not. If nothing changes, he will then have to go through an insurance comparison to change auto offer and, ultimately, take out a contract that is more suited to your situation.
Covid-19: is teleworking covered by home insurance?
As things change, some of our newer habits are bound to stay. Thus, evoking the potential changes in insurance linked to the pandemic gives the opportunity to mention a central subject: teleworking. Between March and July 2020, it is estimated that 82% of companies have used teleworking (investigation of the Confederation of Small and Medium-Sized Enterprises – or CPME).
Indeed, with the first confinement, many employees found themselves browsing their employment contract.Home Insurance in order to know if it had any utility for teleworking. Quickly, with the generalization of the latter, it was necessary to think about risk management at home: what is the employer’s responsibility when working from home?
It is ultimately the same as when you go to the office, because the support of the employee in teleworking is provided for in the Labor Code. From the moment a contract binds a worker to the employer (CDI, CDD, interim, etc.), the latter is responsible for his protection when he exercises his professional functions. The employee is covered for material and bodily injury, but also intangible, such as the theft of sensitive data.
So, overall, the responsibility related to its teleworking activity lies with the company. For example, concretely if an employee is injured, ” the accident occurring at the place where teleworking is carried out during the exercise of the teleworker’s professional activity is presumed to be a work accident » (article L1222-9).
Nevertheless, for the employee working from home, it may be imperative to notify his home insurer. While this is not always mandatory, the situation is sometimes mentioned in the contract. As a precaution, informing your insurance company is a plus and above all, it allows you to receive a certificate to know precisely what you are covered for.
In the end, the conclusion is as follows: although worker protection is generally sufficient for teleworking, there is a real opportunity for metamorphosis and reinvention with regard to insurers’ products. Particularly for the self-employed, who do not benefit from any real professional insurance protection. So, in the future, will we see any new optional contracts emerge, rethought due to the increasing use of telework by the self-employed and businesses?
Telework, Covid-19 and home insurance: the case of self-employed workersSelf-employed workers are the big forgotten people in insurance protection at work. They have every interest in checking that their home insurance policy covers their sensitive equipment and data in the context of their professional activity. In general, for a computer and an Internet connection, a basic contract is sufficient. But it is always preferable to inquire directly with your insurer.
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