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⚖️ '''Loi Lagarde''' is a French law enacted in 2010 (Loi n° 2010-737 du 1er juillet 2010), formally the reform of consumer credit legislation, that established the right of borrowers to choose their own [[Definition:Mortgage insurance | mortgage insurance]] (assurance emprunteur) independently of the lending bank, provided the substitute policy meets an equivalence-of-guarantees standard. Named after Christine Lagarde, who served as France's Minister of the Economy at the time, the law targeted a long-standing practice in the French market whereby banks required borrowers to purchase mortgage insurance from their own affiliated or captive [[Definition:Insurance carrier | insurer]] as a condition of the loan.

⚙️ Under the framework introduced by Loi Lagarde, a bank may not refuse an external mortgage insurance policy if it offers coverage at least equivalent to the bank's own group contract in terms of guaranteed risks — typically death, disability, incapacity, and job loss. The law explicitly prohibits banks from modifying the loan terms (such as raising the [[Definition:Interest rate | interest rate]]) as retaliation for a borrower's decision to use an external insurer. In practice, the equivalence-of-guarantees assessment became a point of friction, as banks retained discretion to define the criteria for equivalence, sometimes using that discretion to discourage switching. Subsequent legislation — including the [[Definition:Loi Hamon | Loi Hamon]] and [[Definition:Loi Bourquin | Loi Bourquin]] — built upon Loi Lagarde's foundation by adding time-based switching rights, but the principle of free choice of insurer originated here.

🔓 Loi Lagarde marked a turning point for competition in the French mortgage insurance market, which represents a substantial share of the country's overall [[Definition:Life insurance | life insurance]] [[Definition:Insurance premium | premium]] volume. Before the law, banks controlled an estimated majority of mortgage insurance distribution through bundled sales, leaving little room for independent insurers, [[Definition:Mutuelle | mutuelles]], or [[Definition:Insurtech | insurtech]] entrants. By enshrining the borrower's right to delegate their insurance choice, the law opened the door to alternative providers and comparison services that could offer lower-cost or better-tailored coverage. It remains a foundational piece of the legislative architecture governing consumer insurance choice in France and is often cited alongside its successor laws as part of a progressive liberalization trend in European personal lines markets.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Loi Hamon]]
* [[Definition:Loi Bourquin]]
* [[Definition:Mortgage insurance]]
* [[Definition:Assurance emprunteur]]
* [[Definition:Insurance regulation]]
* [[Definition:Policyholder]]
{{Div col end}}

Definition:Loi Lagarde - Revision history

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