The French life insurance market experienced a new episode of outflow in November, however less marked than in previous months, the French Insurance Federation announced Thursday, stressing that the situation “tends towards equilibrium”.
In November, life insurance companies collected some 10.4 billion euros from their clients, while the amount of benefits paid during that month reached around 10.5 billion euros, according to figures published by the Federation.
This results in a negative net collection, or outflow, of the order of 30 million euros but which “continues to approach balance,” she underlines.
Since the start of the year, the French life insurance market has in fact been very strongly affected by the health and economic crisis linked to the Covid-19 epidemic, which has resulted in episodes of outflow of two billion euros in March, April and May. In the following months, the outflow continued but slowed down continuously.
In doing so, the cumulative net inflows over eleven months turned out to be negative and amounted to -7.3 billion euros, compared to a positive net inflow of 23.3 billion euros over the same period in 2019.
“The year 2020 is paying off the consequences of containment and the crisis, with marketing made difficult, but also effects on the behavior of savers. Precautionary savings are booming in connection with the uncertainties that push households to fulfill their precautionary reserves, “commented to AFP Franck Le Vallois, director general of the French Insurance Federation.
In detail, the cumulative payments collected since January reached 103.5 billion euros, against 132.8 billion euros over the same period in 2019, while the benefits paid to policyholders amounted to 110.8 billion euros. billion euros, compared to 109.5 billion euros over the same period in 2019.
Highlight of the year 2020, “the proportion of payments to unit-linked media is growing quite significantly”, underlines Mr. Le Vallois.
From January to November, the share of unit-linked payments reached 34% of all contributions, against 27% over the same period in 2019.
The units of account designate investments whose capital and interest are not guaranteed, but whose return is potentially more profitable than investments known as “euros”, whose capital and interest are guaranteed.
At the end of November 2020, the outstanding life insurance contracts amounted to 1.785 billion euros.
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