The French abandoned life insurance in July, with money outflows exceeding inflows by a billion euros, according to data released Friday by the France Assureurs federation. In recent months, life insurance has had mixed success.
After an already negative balance in May (-1.6 billion euros), it picked up again in June, when cash inflows exceeded outflows by 1.7 billion euros. While deposits were flat year-on-year (+1% to €12.1 billion), benefits, which include withdrawals and money paid to beneficiaries in the event of death, increased 16% to €13. ,1 billion euros.
However, “the month of July does not translate into acceleration,” said Franck Le Vallois, CEO of France Assureurs, during a press conference, recalling that since the beginning of the year services have increased by 19% compared to the same period in 2022. .
No massive divestment of invested funds
According to him, this trend is explained by a context of economic difficulties, which encourage policyholders to dip into their savings. The restriction of real estate credit also forces households to have a greater personal contribution and, therefore, to divest themselves, for some, of their life insurance.
In recent months, life insurance has also been affected by the comparison with the Livret A, whose yield of 3% is much higher, although it is exempt from social and tax contributions.
Although the advantage of the Livret A savings account does not seem to have led to a massive divestment of funds invested in life insurance, savers tend to favor regulated savings in their new investment options. This is demonstrated by the record amounts deposited in recent months in the Livret A, on the way to a record year.
Life insurance, however, continues to be the main savings product for the French, with outstanding balances amounting to 1,916 million euros at the end of July, 3.5% more in one year.
Source: BFM TV
