The real threat to the life, this are the insurers

In a context of the end of the reign, the sacrosanct euro funds is being attacked from all sides by the professionals, who think more to the sustainability of their business model and their clients.

The law Fir 2 lives his legislative life. Passed in second reading in the national Assembly, it must pass again in the Senate before being finally adopted. To date, there is no indication that the amendment 21a relating to life insurance will be modified. This text, which has caused much ink to flow, has at least the merit of having pointed out the advantages of this budget for savers, in particular its liquidity. Which, stuck as they are on bad contracts, leave this quality is often untapped.

With this famous amendment, it is, first, to give freedom to the High financial stability Committee to suspend or limit the possibilities of buyouts and trade-offs. The objective : to avoid that an insurer is not destabilized by massive withdrawals.

The other idea is to allow this committee to "adjust the rules of the constitution and reversal of the provision for profit sharing", in other words, to regulate the rate of return of the funds in euros.

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The reactions alarmées were not slow. Those investors, who are worried about the future of their favorite product, journalists, heritage, anxious to defend the interests of their readers and, more surprisingly, professionals in the sector. Thus, Gérard Bekerman, the media patron of the Afer, said in the daily Les Echos : "Why would you want to limit what we can give to our members ?", denouncing a "transfer of wealth" in favour of companies at the expense of individuals.

Or, the same, to the head of the association, which distributes a standard contract, was a vote a few months earlier, in the general assembly, even before the publication of a decree in this sense, the possibility of moving to the capital gains of the fund in euros to the euro-growth, thereby depriving the insured of gains to which they are entitled ! A different kind of wealth transfer that obviously bother him less...

Hypocrisy to all floors

The hypocrisy is to all floors also on the side of life insurers. What about those who lament, in order to better promote their units of account handsomely loaded, the difficulty of investing the collection generated on the funds in euros ? Yet, they boast, the season coming, the performance of their general assets. And for those who communicate on the performance of their funds secured, but prohibit their customers to place 100 % of their payments ?

As Spirica that, since 1 September, requires at least 25 % of units of account in order to access a fund in euros, and 35 % beyond a million euros. This is only the tip of the iceberg.

In the private banks, where the deposits are important, similar requirements are applied for a long time. They are imposed by CNP Heritage, The Global Partners, or Neuflize Vie, to name but a few.

What to think, finally, of those - Generali, for example, working together with their distributors to increase the management fees of their funds in euros on collective contracts, putting their owners in front of the accomplished fact ? While lowering the capital guarantee.

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life Insurance rates / returns contracts

Two types of life insurance are worth more than a life Insurance : how to earn more life Insurance : what to do in the face of declining rates?

The great challenge facing the profession, in a context of rate moribund, is not that easy to solve. But insurers cut with the sickle in their commitments. They would do well to review their practices prior to permanently losing the confidence of investors, eternal turkeys of the farce.