Mapping out how the protection of the future may look
A focused strategic initiative
CNP Assurances intends to reinvigorate its personal protection offering and expand its range of solutions to reflect the lessons of the COVID-19 crisis. A multi-disciplinary workgroup is exploring new avenues. The initiative will look closely at new types of cover and new solutions, changes to the service offering and more agile business processes. The first avenues being explored are adding loss of income cover to term creditor protection and incorporating special arrangements, and cover for pandemics in personal risk policies, such as scrapping deferral periods and automatically activating personal services, including home meal delivery.
Pandemic insurance in the pipeline
An insurance industry taskforce has mapped out the contours of an insurance regime covering businesses against the financial effects of a catastrophic event. This “Catex” insurance would cover events such as a pandemic, as well as terrorist attacks, urban unrest and natural catastrophes. The regime would be underpinned by a partnership with the government since insurers alone would not be able to cover events on this scale. It would be available only for SMEs and micro-companies, which are more vulnerable. They would receive rapid payouts in the form of adjustable “resilience capital” based on the gross margin earned by the business. Lastly, it would be underwritten by paying an additional premium on an existing multi-risk business policy or business interruption cover. This insurance sector proposal is intended as a contribution to the public debate.
General loss of autonomy insurance
As a leading player in the long-term care market, we are in pole position to tackle the challenges posed by today’s longer life expectancy. In a presentation at the Reavie 2019 industry event, we backed the industry-led call for universal loss of autonomy insurance funded on a pay-as-you-go basis. This solution, based on a model of mandatory collective enrolment, would pool risk to provide a basic level of cover for everyone in France. The cost of paying out a €500 monthly income to people who have lost the ability to care for themselves would require a monthly contribution of €10 from everyone aged over 20 in France.
Working together with its partners and insurance stakeholders, CNP Assurances is overhauling its offering to meet changing expectations.