Life insurance continues to attract French savings

Net inflows from life insurance amounted to 2.3 billion euros for the month of November. She “Exceeds the symbolic threshold of 2 billion euros for the second month in a row”, notes a press release from the French Insurance Federation (FFA). In gross, it has also rarely been so high: it amounts to 12.4 billion euros, a record for the month of November.

“Life insurance meets many needs expressed by savers, and this is the reason why it is so popular with 18 million holders”, indicates Franck Le Vallois, general manager of the FFA. The outstanding amount thus remains at its historic peak already reached in October at 1.861 billion euros.

The euro fund, the flagship and secure product of contracts, is gradually losing its power of attraction, even if it remains the main receptacle for payments. The units of account (UC), which make it possible to invest in the equity or real estate markets, are subject to ever increasing contributions. They account for 39% of the collection, a figure slightly higher than that for the whole year (38%).

A parenthesis before Omicron

“The good performance of the markets and the drop in the return on euro funds explain the continued high level of inflows in unit-linked funds., explains Philippe Crevel, director of the Cercle de l’épargne. Collection which is encouraged, moreover, by insurers. “ More and more companies are demanding that a certain part (30% in general) of each payment be directed towards CUs. However, policyholders remain free to then reallocate their savings in full to the euro fund.

“Unlike the Livret A which has recorded two consecutive outflows, life insurance is benefiting from renewed interest from households who redirect part of their savings”, continues Philippe Crevel. Regulated passbooks had collected a large part of the money that the luckiest French people had not been able to spend during successive confinements. This “savings surplus” has been estimated at 187 billion euros by La Banque de France.

“In November, the epidemic was relatively under control, even if the first signs of recovery were emerging., adds Philippe Crevel. This relative optimism has encouraged a long-term commitment to savings. The improvement in the economic situation, with a rapid decline in unemployment, also explains, at least in part, the good performance of life insurance. The resurgence of the epidemic could weigh on collections in the coming months, with priority being given to precautionary savings. “

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