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Net inflows from life insurance reached a decade-high level in the first five months of 2022. The inflation rate exceeded 10% in nine of the nineteen eurozone countries. The maximum rate for real estate loans increased by 17 basis points on 1 July 2022. The ecological bonus is extended until the end of 2022. The real estate market remains dynamic in Île-de-France. A transitional period opens in the last six months of 2022 for frontier and cross-border workers working from home. Financial supervisors have updated their blacklists of sites offering investments in the unregulated foreign exchange market and cryptocurrencies.

Summary:

  • Life insurance: net inflows at the highest for ten years
  • Inflation is approaching 10% in the euro area
  • Real estate credit: increase in the maximum rate of 17 basis points
  • The ecological bonus is extended until 31 December 2022
  • Ile-de-France: a still dynamic real estate market
  • Social security: transitional period for frontier and cross-border workers
  • Investment: supervisor blacklist update

Life insurance: net inflows at the highest for ten years

Net inflows from life insurance reached € 12.4 billion in the first five months of 2022, up by € 2.8 billion compared to the same period in 2021 and the highest in ten years, according to data published by the France Assureurs federation. Contributions have also reached levels not seen for ten years: 65.6 billion euros since the beginning of 2022. As for the share of contributions paid to account shares, it has stabilized at around 40% for several months. Existing life insurance contracts reached € 1.847 billion at the end of May 2022, an increase of 0.6% on an annual basis.

Inflation is approaching 10% in the euro area

Consumer prices rose 8.6% yoy in June 2022 in the euro area, up from 8.1% in May 2022, according to data from the statistical office of the European Union, Eurostat. Inflation now exceeds 10% in nine of the nineteen eurozone countries. In France, where inflation stood at 5.2% over one year in May 2022, the government is planning several measures under the purchasing power bill. In particular, a device to limit the increase in rents to less than 3.5% and an allowance to help people forced to use the car to reach the workplace to cope with rising fuel prices.

Real estate credit: increase in the maximum rate of 17 basis points

On 1 July 2022, the usury rate, i.e. the maximum rate at which a loan can be granted, increased by 17 basis points for real estate loans with a duration of twenty years or more (from 2.40% to 2.57%), as well as for mortgages under the age of twenty (from 2.43% to 2.60%). There hadn’t been such a shift since the second quarter of 2017, when rates were falling. In an environment of high inflation and rising key central bank rates, this rise in the usury rate should stimulate the mortgage market. The growth rate of home loan production is already high, at 6.8% yoy in April 2022.

The ecological bonus is extended until 31 December 2022

The scale of aid for the purchase of an electric vehicle, originally modified on June 30, 2022, has been extended until December 31, 2022, the Minister of Economy, Finance and Industrial and Digital Sovereignty Bruno Lemaire announced. The ecological bonus is therefore kept at € 6,000 for an electric car whose price is less than or equal to € 47,000. The bonus of € 1,000 for plug-in hybrid vehicles with a maximum price of € 50,000 is also extended until the end of 2022. From 1 January 2023 the tariff will be reduced by 1,000 euros and plug-in hybrid vehicles will be excluded from the scheme.

Ile-de-France: a still dynamic real estate market

The Île-de-France real estate market remains very dynamic, with a 3% increase in sales of old houses from February to April 2022 compared to the same period in 2021, according to the latest note on the real estate situation of Notaires du Grande Paris. . As for prices, they increased by 2.6% in April 2022 in one year, with a sharp increase for houses (+ 6.3% in one year) and a decline for apartments (+ 0.8%). The latter are being torn down by the erosion of values ​​in the capital, note the notaries. In Paris, the average price per square meter of old apartments therefore fell by 1.2% in one year, to € 10,500 in April 2022.

Social security: transitional period for frontier and cross-border workers

The flexible application of European social security rules in the case of teleworking for frontier and cross-border workers is extended until December 31, 2022, the government said in a statement. These flexibilities are no longer justified by the health situation, but it seems necessary to provide for a transitional period, in particular to prepare for a possible change in these rules, it is specified. In the context of the health crisis, the Member States of the European Union have put in place these flexibility measures in order to avoid a change in the applicable legislation on social security.

Investment: supervisor blacklist update

The Financial Markets Authority (AMF) and the Prudential Supervisory and Resolution Authority (ACPR) have just updated their black lists of sites that offer, without authorization, investments in the unregulated currency market (Forex) and derivative products. whose underlying consists of cryptocurrencies -resources. Since the beginning of 2022, 28 unauthorized sites have been added in the Forex category and 1 in the cryptocurrency derivatives category. Blacklists are updated regularly but are never exhaustive, supervisors warn, urging savers to be vigilant. Over the past two years, the French victims of these scams have lost almost € 1 billion.

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