More withdrawals than payments, such is the balance for life insurance in October, according to figures published on Thursday 1 October by the professional association France Assureurs. The net departure thus amounts to 300 million euros. A situation that had already appeared in August – up to 700 million euros – for the first time in two years.
At the end of October, total life insurance outstandings stood at 1.827 billion euros, compared to 1.876 billion at the end of December 2021. “It reflects a climate characterized by uncertainty. The deterioration of the economic and financial environment, the deterioration of the business climate creates concerns among our compatriots and, basically, a wait-and-see attitude on the part of savers”. explained to the press Franck Le Vallois, CEO of France Assureurs.
Savings are still so popular among the French: almost 6,000 billion euros are invested
Eurofunds are primarily affected
In detail, all the contributions, that is the amounts paid, amounted to 11.5 billion euros in October, or 1.5 billion less than last year at the same time. At the same time, benefits (which include redemptions and payouts in the event of death) amounted to 11.8 billion: This is 1.3 billion more than in October 2021.
Eurofunds, whose capital is guaranteed, were particularly affected by this dissatisfaction. “The low returns on Euro funds, which are now on average lower than for Livret A, and the volatility of stock markets deter households from paying on their contracts”, commented Philippe Crevel, director of Cercle de l’Epargne, which sees life insurance “keep standing still until the end of the year”. Since the start of the year, Euro funds have suffered a real hemorrhage, with an outflow of 17.1 billion euros, three times more than last year in the same period.
The units of account (UC), potentially more profitable but also riskier, on the other hand, have recorded a net inflow of 29.4 billion euros since January, a record.
Life insurance signs its first net outflow in two years in August