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The 2 trillion French life-insurance market can now invest in crypto


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The 2 trillion French life-insurance market can now invest in crypto




The Pacte law (Plan d’action pour la croissance et la transformation des entreprises, Action plan for the growth and transformation of enterprises) was adopted this Thursday by French lawmakers according to a local paper.

Based on a rough translation, they say a dual provision of the act allows insurers to invest, via specialized professional funds, in crypto-assets. FPCIs (Fonds Professionnel de Capital Investissement, Professional Capital Investment Funds) are also affected by the measure.

According to information gained by Les Échos, one of France’s biggest financial paper, the Pacte law passed this Thursday in the National Assembly allows insurers to offer life insurance policies exposed to crypto-monies. A first for a product so popular in France, they say.




“With these two provisions, it is written in black and white that FPSs can invest in cryptos like bitcoin,” says Emilien Bernard-Alzias. Private equity investment funds (FPCI) are also affected by the measure.

Meaning this is far broader than just life insurance companies and probably applies to institutional investors in general, including pension funds.

It appears France has basically removed a restriction – also found in US law and elsewhere – that only circa 10% of funds under management can be invested in non-securities.



Edited by Julian_Williams
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35 minutes ago, QuizPops said:

Wonder what would happen if they just casually bought bitcoin with 2 trillion euros :sarcastic:

BTC price would then be at 118,000$ (solely based on the BTC MC calculation)

I am pretty assure the insurance companies, when having a client willing to invest, will put BTC (and other crypto) in the low risk aversion products.

There are two types of contract in France:

  • contracts in euros or monosupports: they are only invested in euro funds; (guaranteed but low return (2% / year), no risk)
  • multi-support contracts, which include both a fund in euros and Units of Account (or UC) invested in units of SICAVs, mutual funds or trackers, themselves mainly invested in shares or bonds (3.5% and more).

Companies each have their baskets for the client to pick depending on their profile.

These are just examples:

  • Risk averse: 100% in euro funds
  • Mildly risk averse: 60% in euro funds + Real Estate
  • Low risk aversion: 30% in euro funds + Real Estate + SICAVs + BTC
Edited by JannaOneTrick
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I am learning about the newly adopted PACTE law in my country.

So, as I said earlier, insurance companies allow their clients to choose between a basket of products between:

  • Euro funds
  • UC (Unités de Compte, or Account Units in English)

Insurers will soon be able to offer life insurance policies exposed to cryptocurrencies, such as bitcoin, through specialized professional funds (SPF).

A direct consequence of the PACTE law, definitively adopted last Thursday in the National Assembly: 

Articles 21 and 26 of the law provide for the amendment of the Insurance Code, in order to give insurers the possibility of placing specialized professional funds (SPF) in life insurance account units (UC).

Not confirmed yet: No limit as to how much a client can invest in cryptocurrencies within his contract.

Edited by JannaOneTrick
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I obtained more information regarding the SPF.

Even if insurance companies start offering such products, few French people will see their life insurance exposed to cryptocurrencies. Indeed, only professional investors (individuals with a portfolio of at least 500,000 euros and having worked in finance for at least 12 months) would be eligible.

Oh well, it still is a first step. These products are very popular in France, as we rely on it for investment and retirement savings too, on account of tax benefits. In fact, insurance policies reflect 40% of financial assets among French households, surpassing that of securities, cash, and other savings products.

I will try to get info directly from my own insurer later on.

Edited by JannaOneTrick
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