Loan Insurance: Naoassur, the Contract that Facilitates Credit

Paris, July 22, 2014 – BPSIs, a new digital insurance brokerage company, introduces loan insurance featuring the best coverage at a very competitive rate. Universal, the Naoassur loan insurance contract adapts to all types of loans and borrowers to meet the needs of policyholders and lending institutions alike. It is primarily distributed via insurance and credit brokers.

In accordance with the Hamon Consumer Law, for any mortgage offer issued after July 26, 2014, the borrower now has the option to change insurance within one year following the signing of their loan. It is within this context of liberalized practices and revived competition that BPSIs chose to enter the market, with a product designed to meet the highest demands of borrower clients and lending institutions, in terms of coverage and pricing. BPSIs’ partners – the American insurer Genworth, and the reinsurer Swiss Re, two global leaders in the sector – ensure the longevity and high level of coverage offered by the Naoassur contract.

The Most Competitive Rates Regardless of Client Profile

As examples, for a loan of 200,000 euros, the Naoassur loan insurance rate for death, PTIA (total and irreversible loss of autonomy), ITT (total temporary incapacity), and IPT (total permanent invalidity) coverage amounts to:

• 4,513 euros, representing an average insurance rate of 0.11%, for a couple of 35-year-old executives (50% insured per person, 20-year loan at a rate of 2.70%).
  With the average rate of banks’ collective insurance being 0.38%, the premium this couple would pay would reach 15,200 euros by subscribing to this type of contract, a difference of €10,687 compared to Naoassur loan insurance, which is almost 2.4 times more (236%).
• 6,070 euros, representing an average insurance rate of 0.20%, for a couple of 45-year-old executives (50% insured per person, 15-year loan at a rate of 2.55%).

  With the average rate of 0.38% for banks’ collective insurance, this couple would pay €11,400, i.e., €5,330 more than with Naoassur loan insurance (+87%).

The Best Coverage on the Market

The quality of the coverage offered is even more crucial in the new market configuration: the lending institution can indeed object to a change of insurance if the proposed coverage is not at least as comprehensive as that of its own contract. To ensure compliance with bank requirements and to secure the transactions of its borrower clients, BPSIs has chosen to focus on high-end coverage. Three examples:

• the coverage is lump-sum: in case of work stoppage or disability, the insurer covers the pre-defined amount, even if the insured receives replacement benefits paid by their employer or social security schemes. Some contracts only reimburse up to the amount of actual income loss;
• the insured is covered if they can no longer perform « their » professional activity, which is much more protective than some contracts that require the impossibility of performing « any » professional activity;
• the borrower is covered even if they are no longer working at the time of the claim, whereas others require them to be employed to cover the monthly payments.

Borrowing 1.4 million euros without medical formalities is possible!

With Naoassur, clients can borrow higher amounts than elsewhere, with also higher age limits, without needing blood tests, medical visits, or examinations:

• a simple health questionnaire is required for up to 400,000 euros of borrowed capital before age 60 – a unique case in the market;
• it’s even simpler before age 46: up to 300,000 euros, validating the health declaration is sufficient;

for a transaction of 700,000 euros (€400,000 as principal loan and €300,000 as bridge loan), up to age 60, BPSIs only requires a health questionnaire. And for a couple, these amounts are doubled, meaning €1.4M insured without special medical formalities.

If the insured has no health issues, the Naoassur contract is issued in real time. In more complex cases, a response is provided within 24 hours, in 90% of cases.

Beyond this pricing strategy and the breadth of its offering, BPSIs has focused on consumer information. Jean Orgonasi and Fabrice Couturier, co-founders of BPSIs, state: « We have paid particular attention to information and the duty of advice for a product often perceived as a mere annex to a mortgage loan, whereas it is particularly complex and binding. At each subscription stage, we provide the necessary explanations online so that consumers can understand what they are subscribing to, how and why they will be covered, thus clarifying their choices. »