By Noémie Helvig |
invest.fr |
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Life insurance inflows were positive at €500 million in September, but marked a drop of more than €1 billion compared to the same month last year.
Life insurance regains modest momentum | Image credit: Shutterstock
Life insurance is in moderate recovery after a difficult August. Although it was a sharp fall of €1.3 billion over a year, it still managed to return to the green for the month of September by €500 million, bringing the outstanding to €1.808 billion.
“September was a moderately successful month for life insurance, [avec] three outflows in 10 years. (…) If the collection in 2022 is positive, it will remain modest”, comments the director of the Savings Circle, Philippe Crevel.
In detail, life insurance premiums amounted to 10.8 billion euros in the period, which is a decrease of 500 million euros compared to September 2021. As in August, unit-linked (UC) is a good student: unit-linked contributions reached 42.4 billion euros, which increased by 600 million euros over a year. In terms of funds in euros, safe media, savers poured in 65.4 billion euros during the month. This is 2.2 billion euros less than in September 2021.
More complicated to consider in the long term
“Life insurance faces competition from regulated savings products, Livret A and LDDS (…). With inflation at 6%, the real return on Euro funds will be negative in 2022, on average by more than 4 points, prompting policyholders to either abstain or switch in favor of units of account. “, explains Philippe Crevel, who thus seems to foresee an average rate of around 2% on life insurance.
Who adds that in addition to inflation, “The anxiety-inducing climate caused by the war in Ukraine and threats of energy shortages do not encourage households to make long-term commitments. [Ils] favour [donc] preventive savings such as Livret A or even maintaining significant liquidity in their current accounts”.
Noémie Helvig
