Macroeconomic conditions require more dynamic management of life insurance - August 2022 - News - Life Insurance - Meilleurtaux Placement

Macroeconomic conditions require more dynamic management of life insurance – August 2022 – News – Life Insurance – Meilleurtaux Placement

Inflation, rising interest rates, and the uncertainties created by the war in Ukraine, among other things, are fueling the volatility of financial markets. In this context, medium and long-term investments such as life insurance do better than others, provided, of course, that you adopt a more risky management style.

During the first half of 2022, net inflows from real estate funds, such as OPCIs, SCIs and SCPIs, set a new record. This performance was achieved during a period marked by very strong economic tensions, between:

  • high energy prices;
  • Raw material shortage
  • supply chain disruptions;
  • Economic recovery was slowed by the war;
  • epidemic.

Above all, this feat is a reminder of the interest of investments that are safe havens in times of crisis. Life insurance can win this case. But this depends on the strategies adopted by the distributors and the choices that savers make.

Priority for diversification and real estate assets

The historic collection of real estate funds in the first half of the year was no accident. It proves their ability to overcome the unfavorable economic situation and secure the money of the savers. Specifically, in addition to its tax life insurance properties, the multiple support contract is distinguished by its openness to a wide range of assets, including property values. To improve life insurance returns in 2022,

Therefore, experts recommend investing more in the real estate market, with SCIs, OPCIs and SCPIs incorporated into unit-linked companies.

It should be noted, however, that real estate agents do not serve the same return. The choice of real estate asset will then be crucial in terms of the life insurance contract reward. Betting on real estate also requires a lot of patience, as this type of investment is more suitable for a long-term horizon. In addition to real estate, other units of account can boost your life insurance return in 2022. Thus, insurance companies multiply communications about unknown values ​​such as :

  • raw material mining
  • agricultural products;
  • energy resources.

With the price hikes caused by the war in Ukraine, the search for performance in these sectors can be profitable. These assets with unexpected potential are open to life insurance contract holders through ETFs or exchange-traded funds listed in the associated unit. Like any other UC, these assets present a risk of capital loss.

ImportantThey should only be used as part of a short-term diversification and improvement strategy, when market conditions permit.

Close attention to fees and money in euros

Since July 1, insurers and managers must transparently display charges to each unit of account. This new rule also relates to PER contracts and capitalization contracts. This mandatory offer will be extended in the information documents from January 1, 2023.

For savers, a few basis points differential represents savings of thousands of euros over several years. Moreover , Analysts expect effort from distributors on fees over the coming months. These changes can heighten arbitrage in favor of assets with lower fees. Finally, with interest rates rising, Insurers expect a decrease in investments in euro-denominated funds, For the benefit of UCs. The stock markets and stock indexes will be the biggest gainers.

Leave a Comment

Your email address will not be published. Required fields are marked *