Life Insurance Is Picking Up Steam as the Year Comes to a Close
In October 2023, the life insurance sector saw a dramatic 26% increase in premiums compared with the same period the previous year, reaching a record high of 14.7 billion euros. This increase, unprecedented for the month of October, reflects the sector’s exceptional vitality.
Net inflows also showed a positive trend, totaling +1.5 billion euros in October alone and reaching +2.9 billion euros year-to-date. These figures reflect renewed confidence among savers in the life insurance sector.
Contributions to insurance-based Retirement Savings Plans (PER) have seen remarkable growth of +18% year-over-year. This trend is part of a broader context of economic recovery, reflecting a positive shift in savings and investment behaviors.
In October 2023, life insurance premiums totaled 14.7 billion euros, representing a significant increase of 26% compared to October 2022. Year-to-date, these premiums total 127.9 billion euros, up 6% compared to the same period in 2022. The analysis shows that growth is slightly slower for euro-denominated policies (+4%) than for unit-linked policies (UC, +10%).
The share of unit-linked contributions stabilized at 45% in October and at 40% year-to-date, remaining at the same level as in 2022. Benefits, totaling 13.1 billion euros in October 2023, were up 10% compared to October 2022. Since the beginning of the year, benefits have totaled 125.0 billion euros, an increase of 15% compared to the same period in 2022.
The direct result of this performance is net inflows of +1.5 billion euros in October 2023 and +2.9 billion euros year-to-date. Total assets under management stood at 1,890 billion euros at the end of October, up +3.1% year-over-year.
In October 2023, 77,300 new subscribers opened a PER account with insurance companies, reflecting growing interest in this type of savings plan. Contributions to insurance-based PERs rose significantly by 18% compared to October 2022, reaching 910 million euros. During the same period, 11,200 policyholders transferred funds from existing policies to a PER, totaling 270 million euros.
Overall, the market for PERs offered by insurance companies posted significant growth, with 88,600 new policyholders and 1,180 million euros in premiums for the month of October 2023. Net inflows into PERs totaled +716 million euros in October and +5,078 million euros since the beginning of 2023, representing increases of +12% compared to 2022.
As of the end of October 2023, 5.3 million policyholders held a PER, representing assets under management of 68.9 billion euros. Excluding transfers, as of the end of June 2023, insurance companies held an 85% market share of the 27.7 billion euros in assets under management from new business.
(source: France Assureurs)
