Life insurance: why you should delegate the management of your contract?

Don’t understand everything about life insurance? Delegated administration is made for you. Sébastien d’Ornano, president of fintech Yomoni, explains how his company increases your savings.

© SP/Yomoni

– Sébastien d’Ornano, President of Yomoni.

In your savings products, the customer delegates financial management to you. He chooses a risk profile and then he has nothing else to do. How is his profile determined?

Sebastien d’Ornano: The entire customer journey is digitized. It is an algorithm that cross-references management horizon (5, 8 years or more), risk aversion, financial and personal situation, and financial knowledge. Depending on these various elements, a risk profile is designed. 300,000 people have already passed through here.

This makes it possible to avoid all the biases that a flesh-and-blood adviser might have: for example, geographical biases (he generally focuses on the markets he knows best, Europe), or suggests a relatively low level of risk to avoid asking too much from the client, when financial markets are turbulent. Our algorithm does not have this kind of bias! If a saver chooses a profile that is too far from our recommendation, an advisor will contact them to check if there was a mistake.

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Also read: Life insurance: with delegated administration, experts take care of everything!

Are the returns from your management profiles up to par? ?

We increase our clients’ savings by getting them to take the right amount of risk. In our life insurance, we offer 9 profiles, of which 5 without a share invested in a guaranteed and risk-free fund in euros. Last year they were all hits: 4.63% return without fees for the safest (70% for the Eurofund) and 18.98% for the most dynamic, 100% invested in shares. The annualized performance of our profiles since the creation of Yomoni in 2015 meets our expectations: 2.05% net per annum for the safest profile and 7.05% net per annum for the riskiest profile.

>> Our service – Test our life insurance comparison tool

You say your bestseller is a dynamic profile that only includes actions ?

This is good advice for anyone who has an investment horizon of more than eight years and is not risk averse. Our arguments have more and more weight in view of the performances we have given.

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Also read: Life insurance: discover the return ranking of 1,000 policies for 2023

What’s in your manager profiles ?

Our specialty is investing in ETFs (Exchange Traded Funds), rather than traditional mutual funds. These ETFs work almost automatically because they replicate the composition of an existing stock index. For example, ETFs based on the CAC 40 will invest in the same companies as those that make up the index: LVMH, Dassault, Axa, etc.

Interest is the price: 0.20% fees for a stock ETF on average, compared to 1.5 to 2% for a traditional stock fund. The ETFs we selected also outperformed equivalent traditional funds 98% of the time. Our job is to select the best ETFs by geographic region and then combine them to create each profile. The distribution within our profiles is adjusted on average once a month.

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Also read: Life insurance: those per unit account charges that can cost you dearly in the long run

Why Yomoni?A great success story. Fintech, which celebrates its 9th anniversary this year, has proven itself. At the end of 2023, it managed EUR 1.1 billion (outstanding balances) with a net annual collection of more than EUR 160 million. His choices with a digitized customer journey and ETF-type financial support are paying off.

A key player in financial savingswhich now has a complete offer: life insurance, bank or insurance pension savings (PER), equity savings (PEA) and securities account.

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