1.1. New rules on termination of insurance policies by the insured (France)

An important law dated 17 March 2014 (Loi Hamon) amended French law regarding the termination of insurance policies by the insured (physical persons for their personal needs only). Such insureds are now allowed to terminate their insurance policy at any time, once the policy has been in existence for one year (Article L113-15-2 of French Insurance Code). In other words, the insured is no longer required to wait for the renewal of his policy to terminate it. The government hopes that such a measure will facilitate competition for the benefit of consumers. The scope of this right is nevertheless relatively limited: it concerns only car and home insurance policies.

By Decree dated 26 December 2014, the government decided that these new rules would apply to policies concluded as from 1 January 2015; for pre-existing policies, the new rules apply as from the date of their next renewal.