AERAS agreement
An agreement between the French state, banks, insurers and patient groups organizing access to credit for people with an aggravated health risk.
Someone cured or stabilized who applied for a loan used to run into a string of insurance refusals, each technically defensible, without any policy decision ever choosing to shut them out of credit. The AERAS agreement, signed on July 6, 2006 by the French state, the banking federations, insurers and patient and consumer groups, came into force on January 6, 2007, succeeding the Belorgey accord of 2001. Neither a statute nor an insurance contract, this market-wide accord aims to open credit to people whom ordinary medical underwriting would turn away. A file declined at standard level moves up to a specialist medical unit, then to a pool of reinsurers that makes the final decision. Each tier has more expertise and capacity than the one below. For borrowers under an income ceiling, a capping mechanism funded by a common pool limits the cost of the insurance. A reference grid lists the conditions insurable at standard rates or at limited loading once a given period has passed since the end of treatment. The monitoring committee's annual reports serve as the public indicator.
Signed on July 6, 2006 and in force since January 6, 2007, the agreement succeeded the Belorgey accord of 2001. Its capping mechanism limits the total cost of the insurance to 1.4 points of the loan's effective rate for borrowers below an income ceiling, and its monitoring committee reports that more than nine out of ten files carrying an aggravated risk end up covered.
Follow the research
One letter a week. First, the week's underwriting note, when one is published: a dated, argued decision, signed by Paul Bernardski. Then what the observatory published on cyber risk, political risk and insurance. No account, no tracking.
No spam, one-click unsubscribe, no data ever sold.