Insurance Hamon Act:
impacts on customer relationships
and operational processes

Repenser la relation client avec une stratégie « user centric »

"In a market that was already highly competitive, the French Hamon Act has accentuated the phenomenon of volatile customers by simplifying the termination of insurance policies. Insurers therefore need to implement a user centric strategy to (re)win-over customers and build loyalty, using digital technology in particular."

Céline JEZEQUEL  -  Marketing Manager, Tessi Documents Services

A rapidly developing regulatory and competitive environment

On 17 March 2014, the Hamon Act was adopted in France. This represented new regulatory constraints and was given a cool reception by insurers, who were the ones that were most greatly affected by the impacts on their business model. The key measure of the Hamon Act is the possibility that it offers to consumers to terminate an insurance policy at any time after it reaches one year of maturity, particularly for so-called mass market insurance (car and property insurance for example).

This regulatory facility shakes up the market, which was already weakened by the arrival of aggressive new players such as all-purpose finance institutions, internet service providers and mass retail.

This is combined with the transformation in communication methods. New technologies and the Internet have transformed consumers’ behaviour, including in the field of insurance. You only need to look at the success of insurance price comparison websites (,,,, etc.).

When confronted with the development of the regulatory and competitive environment, traditional insurers therefore need to rethink their customer relationship model to maintain their market share and attract new customers.

Moving towards a user centric approach

Although until now insurers favoured a product marketing approach and were moving towards a somewhat passive relationship with their customers, it is now essential that they take the initiative in the customer relationship without waiting for a claim.

Driven by the new regulations and in order to reduce the churn effect induced by the Hamon Act, insurers must recreate their relationship with customers by emphasising their loyalty building strategies. It is therefore essential that they refocus on a “user centric” approach by placing the customer at the heart of their strategy.

But the Hamon Act, which was originally seen as a constraint, also offers a commercial opportunity that should not be overlooked: by inciting consumers to more frequently reconsider their policies, it offers insurers a greater opportunity to be in contact with their policy holders.

Digital transformation for a high-performance and agile customer relationship

Insurers are aware of the need to change their practices in terms of distribution and customer relations to meet the new challenges. And they must inevitably increase the speed of their digital transformation and introduce the notions of availability and mobility into their business model.

As new regulations encourage consumers to be more demanding and volatile. They can choose the policy that suits them best, when and where they like. They wish to search independently, whilst retaining the possibility of face-to-face contact to finalise their purchase.

To meet these requirements, insurers are implementing multichannel systems that integrate digital and mobile tools into their physical networks in order to create synergies between the different contact channels. There are an increasing number of digital tools, in particular for first contact and subscriptions.

But beyond gaining new customers, loyalty building is the real issue. It is therefore essential to maintain the relationship throughout the whole life cycle of the policies. Here once again digitising processes makes it possible to offer high value added services: reducing lead-times for managerial tasks, customer service platforms, simplifying exchanges, remote account management, etc. Thanks to all of these tools, the customer pathway is simplified and smoothed, which not only improves the insurer’s image but above all increases customer satisfaction.


With Tessi CONTRACT, Tessi assists you in implementing digital subscription solutions and optimising the back office pathway. By using electronic signatures for contracts, capturing and processing supporting documents, our solutions make it possible to manage the whole customer pathway, from first contact through to finalising the purchase.

Read the 2nd part: “Digitising processes: a lever for optimising operational performance”

Insurance Hamon Act: impacts on customer relationships and operational processes  Rethinking customer relationships with a user centric approach

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