Is entrusting the management of your life insurance to professionals a good solution?

By Eric Leroux

Posted today at 06h00

How to encourage savers to withdraw funds in euros, guaranteed, to go to units of account, risky? More and more companies are offering managed management profiles.

This mechanism makes it possible, after having established the profile of the saver, to orient him towards a management mode compatible with his expectations, by freeing him from any management concerns: the distribution of savings between the various supports of the contract is entrusted to a professional, who then takes care of making the arbitrations that he deems necessary, according to the evolution of the stock markets, the economic situation, etc. “An attractive solution for those who do not have a private advisor or the time to take care of their savings”, judge Philippe Crevel, general delegate of the Cercle de l’épargne.

Simple and practical, this managed management has long been the prerogative of the most upscale products, sold especially in the world of private banking and wealth management. But it has become more accessible, especially on the Internet, and now also appears in a number of general public contracts with banks, offered from only a few hundred euros invested.

Personalized advice

For the saver, it is a simple way to diversify his savings on riskier media, but with a level of risk that is easy to assess and a priori without any bad surprises, since his investment horizon has been correctly determined at the start. . For the insurer, this is an effective way to divert clients from funds in euros and to develop unit-linked support, which is more profitable for them and consumes less equity (the required solvency margin is lower).

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With between three and ten risk profiles depending on the contract, from the most conservative (often called “cautious”) to the most risky (“dynamic”, “offensive”), these managed management are able to meet the needs of each investor. .

The compromise is perfect, on paper. “It will allow our members lacking time or knowledge to benefit from the advice of wise professionals”, praises Olivier Sentis, general manager of the Mutuelle d’Ivry-La Fraternelle (MIF), which has just launched this type of management.

Sébastien d’Ornano, head of the online broker Yomoni, mentions another advantage: “Savers, especially novices, have cognitive biases that push them to make bad decisions, for example to sell funds in equities when the stock market falls. Managed management avoids this because the portfolios are built on strategic allocations from which we do not deviate. “

Strong rebound capacity

We saw this in the spring after the fall of the stock market, where individuals tended to sell in panic, professionals on the contrary increased their exposure to the market to regain their strategic allocation, which enabled them to profit the rebound in equities. Managers can also be tactical, choosing for their equity pocket the supports they feel are best suited to take advantage of the circumstances, where savers tend to never arbitrate.

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Do the fruits keep the promise of the flowers? The main lesson, after several crises, is that these managements do not protect against losses. They can strike all these profiles, all the more strongly as they are dynamic. But most have shown strong rebound ability and, in the long run, are often quite convincing.

At the online broker Altaprofits, pioneer of “democratized” managed management, which it launched in 2006, performance over fourteen years has risen from 31% for the most cautious level, to 65% for the most dynamic. At Boursorama, the defensive mandate gained on average 3.51% per year, a little more than a fund in euros, but 6.20% for the more offensive.

“An offensive profile is justified over a horizon of at least eight years, says Mr. d’Ornano, or the time needed to go through a complete cycle on the markets ”. A period compatible with the horizon of most savers choosing life insurance, since it is from eight years that the tax system is most favorable.

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