Life insurance: the three revolutions of an increasingly innovative investment

At the end of 2021, 1876 billion euros were placed on this old savings product, which is more than the gross domestic product of Spain or Italy! Against all odds, life insurance remains the preferred investment of the French. Reassuring but also more and more innovative. “The main innovations are to the credit of digital and the diversity of financial media that can now be housed there,” says Hugues Aubry, a member of the executive committee of Generali France – which is also the main supplier and partner of fintech as Altaprofits , Nalo, Cashbee, Ritchee, Goodvest etc.

Another fundraiser is socially responsible investment (SRI) and impact. “Within five years, the current offer will have disappeared in favor of a fully SRI offer,” predicts Daniel Collignon, CEO of Spirica, a subsidiary of Crédit agricole assurances.

1 / Shortened deadlines

As in the main parts of the financial industry, anything can be done online today. But there are always delays with life insurance, often related to regulations. “For example, we lack instantaneity,” says Daniel Collignon. In fact, when you make a withdrawal, those are immediately carried to your account, as can be the case with a simple bank transfer. “The two-month insurer to pay you the money according to the law,” Daniel Collignon continues. Depending on the company, the deadlines are more or less long. “The customer journey remains very uneven depending on the operators: some online withdrawal proposals with transfer are often within 48 hours in your bank account, moreover, it can easily take four to six weeks … or even more, anumiți assurători blocking all transactions until you have updated your customer profile or justified in the details a redemption mening simply in the face of a need for cash! “moves Cyrille Chartier-Kastler, founder of the site Good “We are committed for 72 hours, provided we have all the information we need to recover,” said Hugues Aubry.

Limited offer. 2 months for € 1 without obligation

If you make a trade-off between financial support, which can also take several days, de facto preventing you from using life insurance as a stock trading product. “At Spirica, we are committed to a 24-hour lead time,” said Daniel Collignon. Clearly, if life insurance has made progress, it is neither a bank account nor a securities account! So much for having it in mind.

2 / A wide choice of financial media

Everything can now be included in the right life insurance contracts (read our number special in The April 7 Express) : investment funds of all kinds (equities, bonds, diversified), real estate funds (OPCI, SCPI or SCI), securities (limited to certain major stock indices, such as CAC 40, SBF 120 or Eurostoxx 600, for example), private equity, private debt, structured products, etc. “For a long time, the allocation of assets under contracts was simpler. bad years, the return was around zero, the good ones, 1% or 2% above the remuneration of the guaranteed fund in euros “, explains Hugues Aubry. Today, with a euro fund that pays between 1% and 1.50%, it is clear to change the mode of operation and rely on the different media available in the contract to hope for a certain performance. “The standard allocation has changed its face. It now accounts for one third of the euro fund, one third of the shares or diversified UCITS and one third of alternative funds such as real estate, funds “Infrastructure or certain private equity funds, which have a lower volatility and are gradually capitalizing,” continues Hugues Aubry, hence the importance of benefiting, within his contract, from all the necessary support to achieve this.

The latest innovation is the introduction of private equity (funds that invest in unlisted companies), which was made possible by the Macron Act first and then the Pact Act. Most of the proposed funds are only open for subscription for a certain period (for example, the insurer buys € 50 million from a private equity fund and, once it has resold them to its policyholders, the fund is closed) and liquidity is subject to a number of conditions. With this type of fund, if you are late in deciding, it goes under your nose and you have to wait for your insurer to offer you another one. “Evergreen private equity funds are now appearing, which are perpetually open for subscription and much more liquid,” said Daniel Collignon. Spirica has also become a specialty of these private equity funds. “We try to offer all those who are formatted for life insurance in our contracts, currently seven or eight, and we ensure liquidity and therefore the possibility of withdrawal, at each valuation date (every fortnight)” , he continues.

3 / An accompaniment in financial management

In the 2000s, online brokers (Altaprofits, Linxea, etc.) brought a lot of innovation to the life insurance market, with formulas where most of the management was done remotely via the Internet, at a lower cost (0% entry and arbitration fees) and with real supermarkets of financial support where the investor could choose between more than 1000 units of account or funds. Today’s fintechs have taken another turn, that of simplification and pedagogy. “The new generation of online brokers, such as Yomoni or Nalo, has segmented their offerings by customer base,” says Hugues Aubry. The display of an infinite number of sprijini financiari where the client had difficulty finding his little ones, was replaced by a much simpler marketing promise: the broker you propose to manage your money (via robo-advisors), according to your situation and needs. All you have to do is choose the right profile, there are ten at Yomoni, from the most cautious to the most risky.

Nalo has a different approach: each of your projects corresponds to a management profile piloted with a super algorithm. “And you want to buy the house in five years, finance the children’s studies in five years and prepare for retirement in thirty years, we offer you, au sein du même contract, three different financial managements, each of which accurately collects your objectives. and in this the share of risky assets as well as the shares will vary “, explained Albert d’Anthoüard, director of private clients at Nalo. It is very simple to understand: financial management by project.

Insurers offer more traditionnels and financial management delegation solutions. According to the latest figures from the profession, the share of piloted management has gone from 18% in 2019 to 31% in 2021. A necessity with the increase in financial support.

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