Advisors return to risk in the second quarter – August 2022 – News – Life insurance

The Wealth Management Advisors advocated caution at the start of the year, in the face of the uncertainties raised by the war in Ukraine, high market volatility and the return of inflation. This cautious posture did not last long. Seeking performance, CGPs took more risk on life insurance contracts in the second quarter.

“He who tries nothing has nothing”. Life insurance management advisors seem to be following this advice to the letter during the second quarter, according to statistics revealed in a recent study. This report contains two key pieces of information, which could announce the dominant trends in the life insurance market in the medium term. First of all, Units of Account are back in the spotlight, after a brief slump. However, the success of UC pales in comparison to the meteoric rise of real estate media, stocks that offer more security and promise attractive returns as a bonus.

Discover our life insurance with no entry fees

Moderate risk-taking on alternative media

In the second half of the year, Wealth Management Advisors carried out less arbitrage than at the start of the year. According to one life insurance simulation, this lull primarily reflects investors’ wait-and-see attitude. The latter prefer to wait for the situation on the financial markets and in Ukraine to settle down, before ordering major movements. The caution of savers is also apparent through the nature of the arbitration orders received by the CGPs. Investors seem to be primarily targeting real estate vehicles, whose resilience in times of crisis is remarkable.

Wealth management advisors also note a certain enthusiasm for:

  • Structured products;
  • Monetary supports.

On the other hand, arbitrage on the equity markets and on bond securities is rare. The brief downturns at the start of the year were not enough to reassure savers. The result is clear: the equity funds obtain only 9% of inflows in UC in the second trimester. This share stands at 23% in Q1. Similarly, bonds fell to 2.6% of inflows. Only structured products retain a minimum of stability, with a payout share estimated at 8.9%. On the other hand, investors are clearly showing their commitment to responsible investing. Funds with an environmental or ecological focus are the only ones to outperform on the stock and bond markets.

CUs capture the bulk of payments

In terms of inflows, the units of account regain their throne over the period April-June 2022. Nearly 60% of payments were earmarked for CUs, compared to 42% in the previous quarter. This development indicates a change in perspective among clients and managers. They now believe that financial market instability will last a few more months. They actually prefer to innovate their management style and adopt defensive strategies, while seeking an optimal level of performance.

Precisely, real estate ticks all the boxes of the “miracle” asset of CGPs. Real estate funds make it possible to secure the portfolio and achieve acceptable performance goals. Unsurprisingly, these values ​​absorbed 50% of flows from a professional in the sector. The payments were made mainly via an SCI or an SC.

Discover our life insurance with no entry fees

Leave a Comment