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Life insurance: in the face of falling yields, give more meaning to your savings


Year after year, the traditional secure euro fund sees its yield erode. The time to change the financial allocation of your life insurance contract may have come by, for example, giving it a socially responsible dimension.

It’s an open secret ! In a context of historically low or even negative interest rates, the traditional support in euros guaranteed in capital is running out of steam. After having achieved an average performance, gross of social security contributions (17.2%), of 1.80% in 2018 and 1.50% in 2019 according to the French Insurance Federation, the average return on funds in euros should show a new decline in 2020.

To consider a better performance of your savings, you should move towards investment vehicles in unit-linked accounts, potentially more efficient, but which present a risk of capital loss. This is the opportunity to take an interest in socially responsible investment (SRI) solutions. A good way to give your savings extra soul without sacrificing performance.

More than 600 funds have obtained the SRI Label

SRI is defined as an investment that aims to reconcile economic performance with social and environmental impact, by financing companies and public entities that contribute to sustainable development, whatever their sector of activity.

The interest of savers for this type of financial investment is very strong. 62% of them give importance to environmental and social impacts in their investment decisions, according to an IFOP survey published by the FIR (Forum for Responsible Investment) in the fall of 2020. Unfortunately, SRI is still relatively unknown to savers. Two thirds of them have never heard of it.

To make it easier for savers to identify socially responsible investments, the Ministry of the Economy launched the SRI Label in 2016. This Label obliges managers to invest in companies that are more virtuous than average with regard to ESG criteria (Environment, Social, Governance). A sign that the trend is well established, more and more investment vehicles are claiming this type of approach in their management. At the start of January 2021, more than 600 funds had already obtained the SRI Label (26 for the Greenfin Label which notably excludes investments in nuclear or fossil fuels).

Increased accessibility in life insurance

Their accessibility in life insurance contracts is also growing. Since the Pacte law, each life insurance contract concluded from January 1, 2020 must offer at least one SRI or Greenfin labeled fund in its offer of unit-linked investment support. Many insurers did not wait for this new framework to enrich their range of SRI funds:

In order to facilitate access to this type of investment for as many people as possible, new turnkey solutions are being developed in life insurance. They then take the form of so-called piloted management. In this case, you delegate the selection and monitoring of funds to financial market experts while maintaining an SRI approach to your investment.

Thanks to various orientations and management styles, you can easily adopt a responsible approach to your investments while respecting your investor profile. It would be a shame to deprive yourself !

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