Life Insurance and PER Regulations Are Tightening: Better Protection for Savers in 2026
Effective January 1, 2026, new rules will take effect to further regulate the marketing of life insurance policies and retirement savings plans (PERs).
These measures, introduced by the Prudential Supervision and Resolution Authority (ACPR), are intended to strengthen distributors’ duty to provide advice and better protect policyholders, while addressing the current challenges facing the financial market.
A Strengthened Duty to Advise for Insurers
The ACPR’s new guidelines will require distributors to gain a deeper understanding of each client’s specific needs. From now on, a comprehensive assessment of policyholders’ family, professional, and financial situations will be necessary to tailor recommendations as effectively as possible, particularly when drafting beneficiary clauses.
Emphasis is also placed on analyzing risk profiles. Distributors will be required to conduct a rigorous assessment of clients’ financial capacity in order to offer them products tailored to their investment objectives and risk tolerance. In addition, educational scenarios illustrating various investment strategies must be presented, enabling investors to better understand the implications in terms of return and risk.
Greater Transparency for Unit-of-Account Products
Unit-linked products, often sought after for their potential returns but more exposed to volatility, will be subject to increased oversight. Distributors will be required to provide clear and detailed information, particularly regarding redemption terms and the risks associated with these investment vehicles. In the event of prolonged inactivity on the part of policyholders (four years without any transactions, or two years after a personalized recommendation), an update of the data will now be mandatory to ensure the contracts remain relevant.
Another notable development concerns sustainability criteria. Advisors will need to take into account clients’ preferences regarding responsible investing. Transparent information on non-financial criteria will enable investors to prioritize products that align with their values, particularly in environmental and social areas.
Provide better information on liquidity and tax implications
For PERs, disclosure requirements will also be strengthened. Distributors will be required to explain in detail to subscribers the illiquid nature of the funds invested, the various exit options available, and the tax implications associated with each choice. This transparency is intended to prevent unpleasant surprises for savers when they retire.
Expanded coverage for all insurance products
The ACPR’s efforts are not limited to savings products. More general insurance policies, such as home or auto insurance, will also be subject to stricter requirements. Insurers will be required to regularly verify that these policies remain appropriate for the evolving needs of French citizens, taking into account changes in their personal circumstances and environment.
A Turning Point for the Insurance Industry
These reforms mark an important step in the modernization of the insurance and savings sector. By requiring more transparent and personalized practices, the ACPR aims to strengthen savers’ confidence while helping them navigate a complex financial environment.
For distributors, these new rules present a challenge but also an opportunity to rethink their practices and adopt an approach that is more focused on customer needs. By 2026, the landscape of life insurance and PERs is therefore expected to be better aligned with savers’ expectations, offering a clearer, more protective, and more responsible framework.
