Monday, November 28, 2022
HomeInsuranceLife insurance companies will increase the rate for funds in euros

Life insurance companies will increase the rate for funds in euros

In August, the French avoided life insurance and preferred annuity A, the rate of which had just doubled. 50215080/mensneck – stock.adobe.com

They will draw on their reserves to prevent the French from turning away from the location.

This is an indicator that is carefully studied by insurance companies. In August, the French avoided life insurance and preferred Livret A, whose rate had just doubled (to 2%). For the first time in two years, withdrawals were greater than payments, resulting in an outflow of 700 million euros, notes France Assureurs.

Is this a lasting change in savers’ behavior? With the rise in interest rates, they may turn away from life insurance whose euro funds, which represent 80% of the total outstanding, are uncompetitive. And empty their contracts by placing the savings on new, more profitable financial products. It would hurt the industry. “At this stage insurers are not expecting massive withdrawals, emphasizes Guillaume Leroy, associate actuary at Prim’act. But they fear that savers will no longer invest in their contracts, whose results may pale in comparison to new investments.

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