Life insurance: “security pays no more”, according to Afer

For your life insurance, you have to forget the only fund in euros to get performance. Now, and even more so than before in a context of negative interest rates, you need to diversify your investment. “Security does not pay, the guarantee pays poorly. You have to open up, “says Gérard Bekerman, president of Afer. This is what must be remembered Assises of the association of savers, which took place this Monday, October 28.

“An investor who seeks more profitability must agree to have fewer guarantees or to invest in the longer term”, adds Agnès Pannier-Runacher, Secretary of State to the Minister of the Economy, invited to the Assises of the afer. However, “it is not by the constraint, but in the respect of the freedom of savers, that one will be able to make things succeed”, specifies Gérard Bekerman.

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Understand: Life insurance contract distributors must encourage individuals to diversify their investments, while respecting their advisory duty and the risk profile of savers. This situation is all the more difficult for retailers as the large insurers in the market have announced that they will impose unit-linked investment restrictions for future payments on their funds in euros. What the contract sold by the Afer should not escape …

“Solutions in a context of negative interest rates, to speak only of the Afer: I am for green funds, I am for risk, I am for openness and opportunities”, insists the president of the association. Moreover, for the life insurance policy distributed by Afer, Aviva – the insurer of this contract – has long diversified the investments within the fund in euros. “Since 2015, 1.5 billion euros of the guaranteed fund is devoted to the real economy (SMEs and ETI) .We want to strengthen these investments in the coming months,” says Gerard Bekerman.

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Euro funds' returns will remain positive

However, do not panic about the future of funds in euros, they “can still deliver positive returns,” reassures Agnès Pannier-Runacher. This is thanks to the long-standing assets held by insurers, which are still remunerating at attractive rates and thus offsetting the negative interest rate investments currently being made by the organizations.

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Gérard Bekerman is also optimistic about the future of interest rates, and therefore returns on financial investments. “I am convinced that the situation is reversible (…) We are not condemned to live with negative rates”, declares the president of Afer, against the forecasts made by a large number of actors of the place who expect low or even negative interest rates for several more years.


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