In July 2025, life insurance reaffirmed its status as the go-to investment for French households. With net inflows of €4.1 billion—more than double last year’s level (€1.8 billion)—it posted its best July performance since 2010. This result is well above the ten-year average (€1.4 billion), extending an already exceptional first half of the year.
Flows largely directed toward unit-linked products
The market’s vitality is largely due to unit-linked products (UL). They attracted €3.5 billion in July, compared to €0.7 billion for euro-denominated funds. Since the start of the year, they have accounted for nearly 90% of inflows (+27.2 billion out of a total of +30.7 billion). Their share of contributions now stands at 41%, a record that illustrates savers’ growing desire to diversify their savings and take advantage of a favorable stock market environment.
Between caution and the pursuit of returns
Behind these figures lies a collective behavior marked by caution. The household savings rate stood at 18.9% of gross disposable income in the second quarter, reflecting a desire to set money aside in a still-uncertain environment: persistent inflation, market volatility, and a downturn in the real estate market. Life insurance is emerging as a hybrid tool: capital protection on one hand, return potential on the other, particularly through unit-linked policies.
A key role in financing the economy
Life insurance does not merely reflect household behavior; it also fuels the real economy. As of the end of March 2025, 64% of assets under management were invested in corporate securities (24% in stocks, 34% in bonds, 5% in commercial real estate), while 24% directly financed governments through sovereign bonds.
As Paul Esmein, CEO of France Assureurs, points out:
“Its solidity makes life insurance not only the preferred investment of the French, but also an essential driver of financing for the real economy and major economic, demographic, and environmental transitions.”
A dual barometer: psychological and economicLife insurance thus operates on two levels:
as a psychological indicator, revealing the degree of confidence and caution among households,
as an economic instrument, contributing to the sustainable financing of businesses and governments.
It is this dual dimension—as both an individual safe haven and a collective lever—that explains why, despite changes in the financial landscape, life insurance remains the indispensable cornerstone of French savings.
