12.7 billion euros were paid into life insurance contracts in March 2021. Net inflows amounted to +1 billion euros and +2.1 billion euros in units of account. For the FFA, these figures are encouraging for the revival of the country’s economy.
Life insurance resumes in 2021 – iStock-Cn0ra
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+ 40% contributions in March
The French Insurance Federation (FFA) reported in early May that in March 2021, French savers paid 12.7 billion euros on their various life insurance contracts. This amount represents a 40% increase in payments compared to March 2020 and brings positive net inflows to +1.0 billion euros. Cumulatively, the latter reached +4.4 billion euros in the first quarter of 2021. In total, net inflows amounted to 11.6 billion euros versus 11.3 billion euros for March 2020. Finally, at the end of March this year, outstanding life insurance contracts reached 1,812 billion euros and were up 4% over one year.
A dynamic favorable to unit-linked funds
Despite the context of low bond yields and the risk they entail, units of account are still attractive to savers. The collection in units of account in March 2021 thus represents 37% of the shares in the contributions and is positive at 2.1 billion euros. At the start of the year, net inflows reached + € 7.7 billion on these media. The share of units of account in contributions was 37% for the month of March against 34% for the year 2020.
The success of PER
In its report, the FFA also confirms the success of the Retirement Savings Plans (PER) marketed by insurance companies. These contracts are quietly continuing their momentum with 89,000 additional policyholders, including 25,000 from contracts transferred in the same month. The total payment from savers represents a little more than 1 billion euros, including 0.6 billion euros from transfers. At the end of March, PER outstanding amounted to nearly 18 billion euros.
1,400 billion euros injected into the recovery
The Managing Director of the French Insurance Federation, Franck Le Vallois specifies that this newfound dynamic enables insurers to support the country’s economy at the time of the recovery, insofar as “60% of investments are invested in assets. companies ”. This investment would represent 1,400 billion euros “directly injected into the financing of the productive economy”.
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