These new units of account allow savers to participate in the financing of associations and foundations (Photo credit: 123RF)
Since June 1, life insurance contracts can offer a new type of unit of account allowing savers to participate in the financing of associations and foundations.
Participate in the financing of associations and foundations via life insurance
Decree 2021-668 of May 27, 2021 on life insurance, published in the Official Journal on May 29, now allows life insurance companies to add associative and foundational titles to the range of units of account available on their contracts. life insurance.
These units of account are made up of bonds (ie debt securities or loans) issued by associations and foundations, thus allowing savers to participate in the financing of these structures.
In order to limit risk taking, the sums invested by the saver in these units of account may not exceed 10% of the outstanding amount of his life insurance contract.
These new units of account allow savers to participate in the financing of associations and foundations and are part of the continuity of actions put in place by the government to promote socially responsible investment.
Promote the development of socially responsible investment
Responsible saving consists in taking into account environmental, social and governance criteria in order to reconcile investment, search for performance and positive impact on society. Life insurance is a savings vehicle particularly well suited to responsible saving because it allows access to a varied universe of investment vehicles through units of account and because it promotes long-term savings, which is consistent with the horizon of sustainable development issues.
Since the end of 2018, insurers must include in their life insurance contracts at least one unit-linked support labeled SRI (socially responsible investment), Solidarity or Greenfin (climate) and by 2022, they will have to offer all three.
The SRI label is awarded to funds that reconcile economic performance with social and environmental impact by financing companies that contribute to sustainable development in all sectors of activity. It is awarded by a certification body accredited by the French Accreditation Committee (COFRAC). The labeled funds are registered on the official list of the Ministry of Finance.
The Greenfin label certifies funds financing companies that contribute to the green economy and excluding those in the nuclear sector and fossil fuels. It is awarded by a certification body accredited by the French Accreditation Committee (COFRAC). The labeled funds are presented on the website of the Ministry of Ecological and Solidarity Transition.
The Finansol label distinguishes products which contribute to the financing of activities of unlisted companies and of social or environmental utility contributing for example to access to employment, housing, organic farming, energy. renewables or entrepreneurship in developing countries. It is awarded by a committee of experts made up of independent figures from civil society.