The French life insurance market started the year on the right foot by recording positive net inflows of 3 billion euros in January, a first for almost three years, according to figures published Thursday by France Assureurs.
Life insurance has regained its colors throughout 2021 and the start of 2022 confirms this, rejoiced Franck Le Vallois, director general of the former French Insurance Federation, during a press conference.
Life insurance contributions, or deposits, are established 13.8 billion euros, i.e. 300 million more than in January 2021.
The servicesor withdrawals, are for their part down by 400million euros compared to last year, 10.8 billion euros.
Life insurance had suffered in 2020 from the pandemic, the French preferring to have savings immediately available on a Livret A. But they have largely returned to this savings product in 2021, by depositing 150 billion euros over the yeara record.
The context of low interest rates and rising inflation is leading the French to diversify their savings more, explained Mr. Le Vallois.
Faced with the drop in return on funds in euros, the capital of which is guaranteed, the French have also increased their exposure to risk, a sign of an improvement in confidence after the shock of the health crisis.
In January, unit-linked (UA) contributions, which potentially offer a higher return than euro-denominated funds in exchange for risk-taking, thus amounted to 5 billion euros, up 800 million euros.
In total at the end of January, outstanding life insurance contracts reached 1.871 billion euros, up 4.3% over one year. In France, there are some 18 million contract holders and 38 million beneficiaries.
The geopolitical context, shaken up by the war in Ukraine, could in the coming months have an impact on the economy and on the way French people save, but these consequences remain uncertain for the time being.
The managing director of France Assureurs nevertheless wanted to be reassuring by asserting that life insurance for French savers represents a buffer against the various effects that a crisis, with its economic impacts, can have.
He also affirmed that the exposure of French insurers in Russia and Ukraine was less than 0.03% and therefore very limited.
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