Europe overhauls its social protection model
How can the challenges of longer life expectancy be met ? By encouraging employees to set aside more pension savings, which are currently lacking in France : barely 200 billion euros, compared with 1,700 billion euros for life insurance. It is one of the objectives of the PACTE(1) law. It calls for additional pension savings to become more widespread, simplifies arrangements by harmonising existing options (PERP, PERCO, Madelin, etc.) and makes them more appealing and contemporary through its additional flexibility. Savers need to be able to change policy without losing their tax benefits, pay into their savings throughout their career, transfer their pension if their status changes, and make withdrawals either as a lump sum or as an annuity.
Funding long-term care is a related challenge for mature countries. The French Government has announced reforms in this area for year-end 2019. CNP Assurances is a very active participant in the debate and advocates mandatory long-term care insurance for everyone in France, a solution reconciling the needs of the generations. A very modest contribution (between 10 euros and 15 euros per month) would cover the monthly amount of 500 euros that is not reimbursed, halving the average cost.
Sharing risk across a very large population definitely makes insurance more attractive. However, personalisation and relationships are the future. The wealth of customer data analysed in minute detail by artificial intelligence will make it possible to predict claims experience more accurately. Insurance can then be better tailored to a changing world and the needs of every customer met more effectively.
“The reform of the pension savings system has given us an excellent opportunity to engage in a dialogue with our customers and our partners to devise effective solutions together.”
Thomas Chardonnel,
Head of BPCE Partnership and Pensions
“CNP Assurances is calling for universal longterm care arrangements that leave no one by the wayside and do not heap debt on future generations.”
Laure Châtel,
Head of the Social Economy
(1) Action plan for business growth and transformation.