Inflation definitely hurts the life insurance fund in euros. Net subscriptions (deposits less withdrawals) to these leading investments in French savings fell again in October over the year to -2.4 billion euros, according to the French Federation of Insurers.
Since the beginning of the year, this pocket of capital guaranteed under life insurance has had a net outflow of 17.1 billion euros. A rarely seen level. We are talking about a yield of 1.2%, which does not make it possible to compensate for inflation (6.2% in October). Savers who put their wool socks on this carrier are losing money. And this is not all. this placement also suffers the full force of the Livret A booklet, which is more profitable, completely tax-free and free. The French rushed to this brochure with a pay rise of up to 2% in August.
Livret More fluid
Deposits have been at record highs in recent months, with the exception of October, a traditional outflow month. The cumulative net inflow since the beginning of the year is 30.60 billion euros. “Savers choose to fill their savings accounts”confirms Cyrille Chartier Kastler, founder of the Good Value for Money specialized website.
That’s not the only reason. Booklet A is above all very fluid. “If you need money urgently, the withdrawal is immediate.” continues Cyrille Chartier-Kastler. Delays are longer for life insurance. ” No cannibalization of life insurance by Livret A, Franck Le Valois, CEO of France Assureurs, responds.Life insurance has no ceiling or limit on the number of policies per person. Nevertheless, announcements about the increase in the livret A interest rate can have a psychological effect and sometimes create a call for air. »
Euro fund yields are still expected to rise to between 1.6% and 2% in 2022. But also those of booklet A. Professionals calculate an interest rate of about 1 to 3%eh February This should continue to fuel the battle between these two investments.
Source: Le Figaro
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