Life insurance: what changes on January 1, 2022

From 2022, watch your multi-support life insurance! You can invest in SRI, solidarity and green finance funds. It will also be easier to transfer your old contract to a new one if it offers a eurocroissance fund. Explanations.

From 1is January 2022, two new features bring a facelift to life insurance contracts. If you are sensitive to social or environmental issues in your investments, you will be delighted!

Indeed, from the start of 2022, multi-support life insurance policies will have to offer in their range of unit-linked (UC) at least one solidarity fund, one socially responsible investment (SRI) fund and one labeled Greenfin (former TEEC label) dedicated to financing the energy transition.

Listing of three “responsible” funds from the 1is January

Go back. It was during the vote on the Pacte law, in May 2019, that this obligation was introduced. Insurers have been forced to offer, from 1is January 2020, at least one fund in each sustainable fund sub-family in their contracts. The law then gave insurers a two-year period, from 1is January 2022, to reference the three categories of “responsible” units of account and offer all three of them to their policyholders.

681 billion euros of SRI funds

SRI funds are the most widespread. The SRI label was created in 2016 by the Ministry of Economy and Finance to distinguish funds that aim to reconcile economic performance and social and environmental impact by financing companies that contribute to sustainable development.

As of December 14, 2021, there were 872 SRI-labelled funds representing €681 billion in assets managed by 155 management companies.

2.3 billion euros of solidarity funds in life insurance

Solidarity funds are intended to finance activities that generate social utility such as access to employment, housing, etc. A large part is labeled by the Fair association (ex-Finansol) which lists 20 billion euros in assets. These funds are so far mainly present in employee savings (Company savings plan and retirement savings plan) and little in life insurance (only 2.3 billion euros at the end of 2020 of solidarity funds labeled Finansol ).

“Solidarity UCs will essentially be so-called “90/10” funds”, explained Patrick Sapy, director of Fair, during a webinar in mid-December 2021. In other words, these are funds invested between 5 and 10% in solidarity enterprises of social utility (Esus), solidarity funders or microfinance funds (let us mention Adie, Habitat et Humanisme or France Active, among the best known actors).

The remainder of the fund, ie 90% to 95% depending on the fluctuation of the financial markets, will be invested in non-solidarity, but socially responsible assets.

Greenfin certifies the “green” quality of funds

As for the Greenfin label, created by the Ministry of Ecological Transition, it guarantees the “green” quality of investment funds. For example, it automatically excludes from the label funds that invest in the nuclear sector and fossil fuels. This is awarded by three mandated bodies (Novethic, EY France and Afnor Certifications).

From January 2022, when you take out a life insurance contract, the insurer (or its distributor) must inform you, before signing the contract, of the percentage of labeled CUs contained in the contract. And on your annual statement (which you receive in the spring), your insurer will also have to detail the part of the fund in euros invested in solidarity, socially responsible funds and financing the ecological transition.

Jtransfer to a eurocroissance contract

Another novelty for life insurance from January 2022: the transfer of an “old” contract to a eurocroissance contract, while keeping tax precedence, will be facilitated.

Remember that these eurocroissance funds (or growth funds) are funds in euros invested in assets that are a little more risky and diversified than traditional euro funds, but whose capital is only guaranteed at maturity (at least eight years). .

The Pacte law had taken a first step by encouraging the transfer – total or partial – of the sums of existing contracts invested in funds in euros to these new supports. The finance law for 2022 has extended this possibility of transfer also to contracts whose capital is also invested in units of account.

Good to know : like the Fourgous transfer, this transformation of your old contract into a Eurocroissance contract can only be done by staying with the same insurance company.

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