Borrower’s insurance: the paving stone in the pond of Crédit Mutuel

November 2021

Crédit Mutuel announces the end of the health questionnaire to obtain a loan for the purchase of one’s main residence.

The system, which is regulated, will benefit its most loyal customers: they must be under 62 years of age and have had Crédit Mutuel as their main bank for the past seven years… Nevertheless, this move is a major disruption to the conventions governing borrower’s insurance. This insurance is a very important source of profitability. It is the subject of a fierce battle between bankers-insurers and insurers, whether mutual or non-mutual, to gain market share, by playing with the regulations that are trying to open up this market more and more.

Crédit Mutuel is throwing a spanner in the works by questioning the basis of the pricing of this insurance on the basis of your health and therefore your ability to repay your loan.

I propose to decipher this movement on the basis of our WORLD© approach and the 6 Worlds of reference (see the details in the link on our site www.pval.com) which constitute one of the most effective tools.

The first impact is on the Opinion World: the announcement makes people talk about Crédit Mutuel with an image effect that goes beyond loan insurance. This is where the Civic World is mobilized by the justification around the values of inclusion, solidarity, access for all and mutualism.

Then this announcement greatly simplifies the processing of the files concerned, which should be the vast majority of files, so it will generate a concrete benefit in the Industrial World by reducing costs and processing times.

It also creates value in the Merchant World through the effect of commercial communication and loyalty of existing customers of Crédit Mutuel. This approach is profitable because it targets customers known to Crédit Mutuel from a banking point of view, so the financial risk is controlled.

The internal teams are also valued in their Domestic World. “I belong to a true Mutualist, I am proud to be able to say to my client: no more of this between us”.

Finally, in an obvious way the Inspiration World is at the root of this initiative: “What can I disrupt in this very conformist subject to shake up the conventions that freeze the market?”

In conclusion, this MONDE © reading grid allows one to revisit a subject perceived as fixed, conventional to find an innovative, effective angle of approach by ensuring a systemic approach, without blind spots, to make relevant decisions. Let’s talk about it?

Laurent Dugas

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