Update To French Insurance Code Regarding Time Limits For Claims Handling In “damage Insurance”

On 26 May 2026, the Act “on the simplification of economic life” (Act n°2026-403) was passed in the French Parliament. Its aim was to simplify relationships between economic actors, namely between small companies and banks or insurers.

The Act inserted a new article L. 121-18 in the Insurance Code that applies to “damage insurance”, in particular, property and casualty insurance.

It imposes strict time limits on the insurer for the handling of claims.

First, if the insurer appoints an expert to determine the cause and value of the loss suffered by the insured, the insurer must offer an indemnity or reject the claim with a letter explaining the grounds of the refusal within six months from the date of the notification of loss.