Perspectives de l'assurance vie

Abstract

Life insurance outlook This article recalls the extraordinary success of life insurance investments in France and aims at explaining the reasons for this success. Some figures show the progression of this kind of investment : « life insurance »* in 1996 accounted for almost 70 % of French household investment flows against 20 % in 1987, and over 25 % of their financial assets against 10 % ten years before. 45 % of French households today hold a life insurance contract on an individual basis, against a little less than 60 % holders of a « Livret A » savings book. France ranks third at world level for insurance premiums collected (after the United States and Japan) and first at European level. The fiscal reason has not been the only one that contributed to such a success. Life insurance meets investors' security needs : security against declining returns in French distribution pension system, and also against the risk of a longer life span ; a security that one wishes to transfer to one's children through an inter-generation solidarity, and also a security against the dependence risk during « the fourth age ». To conclude with, the Author recalls the future of life insurance, which although uncertain, remains promising. Notwithstanding, he points out some financial risks (i.e. : life interest risk, asset/liability management inadequacy) which sometimes are not enough taken into account by life insurance product managers. * Life insurance : in the French context means a long-term savings plan.