Would the transplant be taking? The assets of eurocroissance life insurance funds grew by 37% from 2020 to 2021, from 3.3 billion euros to 4.6 billion euros, according to France Assureurs (formerly the French Federation of assurance).
Launched in 2014, eurocroissance was thought of by the Treasury as a third way, halfway between funds in euros and units of account – the two types of traditional media through which one invests in life insurance. The major feature of the first? The capital is guaranteed, day to day. That of seconds? their performance potential.
To join these two worlds, eurocroissance is a product with a capital guarantee, but only at the end of a period of between eight and forty years, at the policyholder’s choice. In the meantime, the value of the savings may fluctuate.
Another particularity: in the long term, the guarantee is either total or partial. By loosening the vice of the guarantee, eurocroissance allows the insurer to invest more dynamically and thus generate better performance.
But originally, eurocroissance was an incredible gas plant, for savers and insurers alike. Nobody really knew how much these products brought in as the calculations were sophisticated. The Pacte law (Action plan for the growth and transformation of companies, voted in 2019) undertook to simplify eurogrowth. Now, these supports are more like a classic unit of account, with a value that changes regularly. And insurers can communicate on an average annual rate of return, which facilitates comparisons.
Despite this facelift, eurocroissance still only represents a drop of water: at the end of 2021, it accounted for less than 0.25% of the 1,876 billion euros invested in life insurance (73% of outstandings on are in euro funds).
How to explain this fiasco? Savers remain loyal to the euro fund, despite its declining yield (1.30% on average in 2021, according to France Assureurs). At the same time, professionals have greatly developed the supply of units of account, by integrating real estate supports, structured products and other funds with a limited level of risk, in order to attract savers. Enough to compete with eurocroissance.
Another element of explanation: the insurers themselves did not believe it. The companies that have developed such a product can be counted on the fingers of one hand. Currently, two main players are betting on this medium: Axa and Generali.
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