Telephone canvassing in insurance: regulator reframes practices from non-European countries

The Prudential Supervision and Resolution Authority (ACPR) issued a warning to insurers and brokers on Monday, September 15, urging them to stop using telephone canvassing service providers based outside the European Economic Area (EEA). "A company established outside the EEA operating a call center is not authorized to distribute insurance contracts for risks and commitments located in France," wrote the banking and insurance regulator, which is affiliated with the Banque de France, in a press release.

French-speaking countries outside the EU singled out

During its inspections, the ACPR noted several breaches of regulations, often due to structures established outside the European Economic Area (EEA), particularly in North Africa. These call centers, whose business practices are sometimes less than virtuous, are also based to a lesser extent in other French-speaking countries such as Madagascar and Mauritius.

The ACPR notes on their part "the abusive reclassification […] of unsolicited calls by customers as solicited calls" as well as "aggressive commercial practices", for example with retirees pushed to take out individual health supplements or health insurance policies for their pets.

Telephone canvassing of insurance products in France from countries outside the EEA (European Union, Iceland, Norway and Liechtenstein) has not been permitted since the rules on the distribution of these products were formalized in 2016.

These poor sales practices engage the responsibility of the entire chain, the Authority points out, from the insurers who create the products to the final sellers, including wholesale intermediaries.