Do French people with a life insurance policy have to worry about their savings? Part of the sums is subject to fluctuations in the stock market, is there a risk with the current financial crisis? Elements of response with Arthur Chabrol, Deputy Managing Director and Director of Life Technical Excellence at Aviva.
To better understand how the investment in “life insurance”, acclaimed by many French people, is being maintained in the face of the current financial crisis, we spoke with Arthur Chabrol, deputy managing director and director of technical life excellence at Aviva, near three weeks after the start of containment.
A measured concern in the face of an extraordinary crisis
All the experts agree that the health crisis and its consequences on the financial markets is “ unpublished ”
In just a few weeks, the world’s stock markets have lost the equivalent of twelve years of growth.
The CAC 40, in particular, fell by almost 30% in March, falling below the 4000 point mark several times. Or two thousand drop points in a few days. It’s simply an exceptional situation for many.
This is also the finding of Arthur Chabrol, Deputy Managing Director and Director of Life Technical Excellence at Aviva ” We entered an unprecedented context, in the first place, we witnessed a movement of panic, which had an impact on the rise in risk premiums in the euro zone. Secondly, large-scale announcements by politicians in favor of the equity markets resulted in a rebound in the markets which have, for the moment, stabilized “, He wants to clarify.
Life insurance a popular, risk-free investment?
The life insurance market in France had a year 2019 marked by a strong acceleration of collection with nearly 26 billion euros, according to figures published in January 2020 by the sector federation.
Part of the money invested in life insurance is invested in equities, hence the risk of losing capital. Can the fall in the stock market affect life insurance? This is the question that many investors have asked themselves in recent weeks.
On this subject, the specialist indicates ” At Aviva, we made sure to send the right information to our distribution network. They are the ones who are in direct contact with our customers. We have seen many more volumes in arbitration requests. It was above all necessary to pass on the good advice ”
A strong collection according to the supports
In any case, the French continue to favor life insurance, and notably units of account, which represented 36% of payments in the first two months of 2020, according to a study published last March by the French Insurance Federation.
Arthur Chabrol also specifies that ” funds in euros at Aviva are at a lower level than in March 2019. For unit-linked arbitrations, the requests mainly concerned certain media. First, real estate, in particular via open vehicles such as OPCIs (Collective Investment Placement in Real Estate). It is mainly these media that have strongly collected ”
At Aviva, however, there has been a 35% drop in life insurance production since the start of containment. ” We were down 7% last February, versus February 2019 Explains Arthur Chabrol.
In the end, for many professionals, would not one of the most prudent advice for savers not be the maintenance of the value of their capital through funds in euros, even if it means sacrificing performance a little? In any case, this is the current observation, while waiting to know what will be the end of the crisis after the end of confinement …