The Algerian financial sector has recently witnessed a substantial overhaul of home loan insurance rules, as per the guidelines issued by the Banque de France. These changes, effective from September 1, 2026, aim to address certain grey areas that previously disadvantaged specific borrowers, particularly those who switch insurers during their mortgage term. The revised regulations bring about notable adjustments to the 'right to be forgotten' clause and the calculation of the €200,000 threshold.
One of the primary changes introduced is the reduction of the 'right to be forgotten' period from 10 years to 5 years for individuals who have previously suffered from cancer or hepatitis C. This implies that after 5 years of completing their treatment, such individuals will no longer be required to disclose their medical history to insurers. Consequently, they will not be subjected to additional premiums or exclusions from coverage. This change is expected to greatly benefit those who were previously hindered by stringent health questionnaires.
Another significant modification concerns the calculation of the €200,000 threshold. Previously, this threshold was calculated based on the total loan amount. However, under the new regulations, it will be assessed on a per-person basis for co-borrowers. This means that even if the total loan amount exceeds €200,000, an individual co-borrower's share may still fall below the threshold, provided their portion of the loan is 50% or less. This change is expected to ease the process for many borrowers.
The new regulations also address the issue of continuity of coverage in cases where borrowers switch insurers. As of September 1, 2026, the original insurer remains liable for covering any claims made before the policy was terminated, even if the insured's disability continues after the coverage period ends. This development provides greater security for borrowers who opt to change their insurance provider.
These changes are set to have a considerable impact on borrowers. For instance, individuals who have been cured of cancer or hepatitis C for over 5 years will no longer need to disclose their medical history to insurers. Additionally, the revised calculation of the €200,000 threshold and the enhanced continuity of coverage in case of insurer changes will benefit borrowers.
It is essential to note that these new regulations will not automatically apply to existing contracts. Instead, they will be gradually implemented, with full generalization to all contracts expected by January 1, 2027. Borrowers are advised to compare insurance guarantees carefully before subscribing, as these changes do not negate the importance of reviewing related contracts.
The revised regulations have been welcomed by experts, who emphasize that while these changes are beneficial, borrowers must still exercise caution when selecting insurance policies. The changes primarily concern cancer and hepatitis C, and the €200,000 threshold only applies if the borrower's share of the loan remains below this amount and the loan term ends before the borrower reaches 60 years old.
Key points
- The 'right to be forgotten' period for cancer and hepatitis C patients has been reduced from 10 years to 5 years.
- The €200,000 threshold for exemption from medical questionnaires is now calculated on a per-person basis.
- Insurers remain liable for claims made before policy termination, even if the insured's disability continues after coverage ends.
