Life insurance: discover the recent reforms introduced by the Pacte law

In a context of rapid changes in the life insurance market, the Pacte law, recently adopted, introduces a series of major reforms aimed at modernizing and energizing this key savings sector in France. Faced with increased competition among insurers such as Groupama, AXA, and Allianz, as well as growing expectations from savers regarding transparency and innovation, these measures redefine the rules of the game. Between the unprecedented possibility of partially transferring certain contracts, better information on performance and fees, and incentives to incorporate more green and solidarity funds, this reform seeks to address contemporary challenges while offering new savings opportunities. Compared to historical practices, these changes open interesting perspectives for key players such as La Banque Postale, CNP Assurances, or Generali, among others.

While the issue of total transferability of life insurance contracts remains unresolved, a significant step has just been taken with the adoption of amendments allowing a limited transfer within the same insurance company. This initiative results from lengthy and sometimes tense negotiations among various stakeholders, including insurers, fintechs, savings associations, and government representatives. In all cases, transparency now becomes a key principle, with increased requirements on communicating fees and yields, making insurers much more responsible actors towards their clients.

The new rules for the transferability of life insurance contracts under the Pacte law

The transferability of life insurance contracts has long been a sensitive topic in France. Until recently, it was not possible to transfer a contract from one insurance company to another without losing accumulated tax advantages. The Pacte law proposes a partial but significant evolution: internal transferability. This means that you can now, under certain conditions, request your insurer to transfer an old contract to a newer one without losing tax oldness, but only if this transfer remains within the same insurance company. This option aims to enable you to benefit from recent innovations, especially in terms of investment supports and often more advantageous fees.

Specifically, this measure extends the possibility of what is called “Fourgoussage,” which previously only concerned switching from a single-support euro fund contract to a multi-support, unit-of-account contract. The novelty is that transfers between multi-support contracts are now also permitted, providing greater flexibility. In practice, if you hold a very classic AXA or Macif contract, you can request to upgrade it to a more modern contract with broader investment options.

Here’s what you need to know about this system:

• 📌 Limitation to the same insurer: The transfer must be made within the same company, for example, with Allianz or BNP Paribas.
• 📌 Avoiding loss of seniority: The fiscal value of the contract is maintained, preventing often significant disappointments for savers.
• 📌 Extension to multi-support contracts: All types of contracts, including multi-support ones, can be concerned.
• 📌 Mandatory annual information: Your insurer must now inform you each year of this possibility.

Professionals like LCL or CNP Assurances actively seek to promote this system, as it offers an attractive leverage for customer loyalty. However, it remains a first step, far from the total transferability allowing a complete change of insurer, a delicate issue still under study.

Criteria 🔍	Situation before Pacte law 🚫	Situation after Pacte law ✅	Examples of insurers involved 🏢
Transfer between companies	Impossible without losing tax oldness	Forbidden (except within the same company)	Groupama, AXA, Allianz, BNP Paribas
Transfer within the same company	Rarely authorized	Authorized with preservation of tax oldness	La Banque Postale, Generali, Macif
Types of contracts concerned	Single-support to multi-support only	All contract types (single & multi-support)	CNP Assurances, LCL
Annual information for the saver	Not mandatory	Mandatory since 2022	AXA, Allianz, Groupama

Practical implications for savers

For the saver, this reform is thus a significant advance. Imagine a person who has held for 15 years a contract with a basic euro fund that yields little income at Generali. They can now request their insurer to transform it into a more performant contract offering euro-growth funds or diversified units of account, without losing the fiscal advantages linked to their seniority. It is a measure that theoretically enhances wealth and offers greater flexibility.

However, before making such a transfer, it is necessary to verify that the new proposed contract truly offers advantages (reduced fees, improved yields, richer options) and that the risk/return balance suits you. This type of advice is often provided by recognized actors such as BNP Paribas or LCL. In any case, increased attention is now paid to prior communication thanks to a strengthened annual information obligation.

The impact of the Pacte law on transfers to Retirement Savings Plans (PER)

Another significant aspect of the Pacte law concerns the possibility of partially transferring savings from life insurance to Retirement Savings Plans (PER). These, which have replaced several devices such as Perp or Madelin, are designed to offer a more flexible retirement savings solution with advantageous tax features.

With the new reforms, holders of life insurance contracts can benefit until January 1, 2026 (an extension of an initially shorter window) from the possibility of transferring to a PER with a double tax incentive:

• 💡 Exemption from capital gains tax up to €9,200 for an individual, €18,400 for a couple at the time of transfer.
• 💡 Deduction of contributions made to the PER from taxable income, allowing for a reduction in the amount of tax paid at source.

This measure strongly encourages the creation and development of PERs, thereby directing a portion of savings towards retirement objectives while capitalizing on the favorable tax treatment of initial life insurance. Actors like Avenir Mutuel and La Banque Postale have quickly integrated this dynamic into their commercial offerings, proposing combined solutions to make this transfer transparent and secure.

It is nevertheless important to carefully consider this decision, because while the PER offers advantages, it is less liquid than traditional life insurance. For concerned savers, it is thus a matter of reflecting on their investment horizon and liquidity needs.

Main characteristic 🔍	PER	Life insurance	Major players 💼
Tax treatment upon transfer	Limited exemption of €9,200 / €18,400	Standard, possible taxation on capital gains	Generali, CNP Assurances
Taxation on contributions	Deductibility of contributions	Not deductible	Avenir Mutuel, La Banque Postale
Availability of funds	Blocked until retirement unless exceptions	Freely accessible	AXA, Macif

Which profiles are concerned by this transfer?

Transfers to PERs are ideally suited for individuals who proactively plan for retirement and wish to benefit from immediate tax advantages on their income. For example, an employee who has accumulated multiple life insurance contracts and wants to centralize their retirement savings can find this approach interesting. Similarly, self-employed individuals benefiting from Madelin offers have an incentive to switch to a more modern PER adapted to evolving fiscal and social policies. Finally, young professionals attracted to more ambitious savings solutions should consider this integrated offer available from insurers such as Allianz or BNP Paribas.

The integration of PER into the life insurance ecosystem is a significant advance that quite deeply disrupts habits. Even if this device remains relatively recent, the trend is clear: insurers, whether traditional like Groupama or innovative like La Banque Postale, are positioning themselves to accompany and simplify this transfer.

Increased transparency on euro fund yields: a step towards more trust

Another fundamental aspect of reforms brought by the Pacte law concerns transparency. Euro funds, widespread in life insurance contracts, offer capital guarantees but often suffer from limited performance, which can lead to dissatisfaction or misunderstanding among savers. Faced with this, the law now requires insurers to publish annually the guaranteed yields and the portion of profit-sharing attributed.

Specifically:

• 📣 Mandatory publication before the end of April: insurers must communicate on their website, within a maximum of 90 working days after December 31, the rate applied for the past year.
• 🖥️ Accessibility over five years: This information must remain accessible to the public for at least five years.
• 🔒 Broadened control: The yields of non-commercialized contracts must also be published.

These requirements promote a better understanding of actual performance for savers and facilitate comparison between players such as Generali, LCL, or BNP Paribas, in a race to attract increasingly demanding and informed clients.

Obligation 📑	Benefit for the saver 💡	Insurers concerned 🏢
Annual publication required	Clear and regular performance monitoring	AXA, Groupama, Macif
Transparency on old contracts	Better visibility on all products	CNP Assurances, Allianz
Availability of data online	Simplified comparison	La Banque Postale, Generali

A positive dynamic for the market and policyholders

This obligation resonates positively with consumers who have long demanded more information. It is a direct response to the information imbalance that often disadvantaged savers, especially when dealing with insurers very different in their commercial communication.

This measure could also push some market players to review their pricing policies and profit-sharing arrangements to stay competitive and transparent, a point closely monitored by research institutes like Macif or Allianz.

Strengthening information on fees deducted in life insurance

Alongside the publication of yields, the Pacte law emphasizes a key point: precise knowledge of fees related to life insurance contracts. Unit-of-account (UC) funds, which offer higher returns but carry risks, are at the center of concerns. This reform aims to improve the clarity of fee disclosures to better protect the saver and enable informed choices.

During the subscription or enrollment phase, the insurer must now provide a detailed document outlining:

• 📄 The gross and net performance of fees for each contemplated unit of account.
• 🕵️‍♂️ The details of fees deducted over a previous period, set by decree.
• 🏷️ The possible retrocessions perceived by insurers or delegated managers.

In practice, this framework helps avoid unpleasant surprises related to sometimes high costs, especially with groups like BNP Paribas or AXA, who are very active in these markets. The informed consumer now has better visibility of what they are truly paying.

Information element 🔎	Before the reform	After the reform	Representative insurers ⚖️
Presentation of fees before subscription	General and often summary	Detailed and quantified per UC	Groupama, Generali, Macif
Transparent retrocessions	Little or not communicated	Mandatory and explicitly mentioned	CNP Assurances, La Banque Postale
Analysis of net performance fees	Not systematic	Required	LCL, Allianz

This greater transparency is widely welcomed by both savers and control agencies, and it fits within a broader movement of increased responsibility among industry actors, notably with entities like Avenir Mutuel or BNP Paribas.

Encouragement for green and solidarity savings through life insurance

In light of climate and social challenges, the Pacte law also includes provisions to better inform policyholders about the portion of their savings invested in green or solidarity funds. Ultimately, it aims to promote more responsible finance without making this option mandatory.

• 🌳 Mandatory information before subscription: insurers must clearly present the green or solidarity supports available within the contract.
• 📈 Annual statement: contract holders receive information about the actual share of their capital invested in responsible investments.
• 🤝 Encouragement without obligation: insurers promote the choice of these funds without forcing their adoption.

Several companies such as La Banque Postale, Groupama, and Macif have quickly adopted this approach. Some sector specialists like CNP Assurances are particularly focused on creating dedicated units of account for ecological transition. This trend reflects a growing willingness to align savings with personal values, a key point for many savers in 2025.

Aspect 🌱	Description	Objective	Actors involved 🌿
Information before subscription	Details of available green/solidarity funds	Transparency on offerings	Groupama, La Banque Postale, AXA
Annual statement	Actual share of responsible savings	Monitoring and education	CNP Assurances, Macif, Allianz
Encouragement	No taxation, only promotion	Sustainable development	Generali, BNP Paribas

Enhanced obligations regarding information and communication

In general, all the modifications introduced by the Pacte law aim at making insurers more responsible through strengthened information obligations towards policyholders. This entails not only systematic publication of performance and fees but also more pedagogical and understandable communication for savers.

Among the flagship measures, we note:

• 📢 Annual publication of a clear report on the contract, highlighting fees, performance, and savings supports by major players such as BNP Paribas or LCL.
• ✍️ Improvement of the pre-contractual information document, which must detail risks and costs precisely.
• 🎯 Training of advisors and agents so that they can better support their clients in their choices.

This more rigorous framework aims at better client satisfaction, including establishments with large portfolios like Generali or Groupama. It seeks to reduce disputes and provide a smoother experience in managing your life insurance.

Obligation 📋	Expected effect 🎯	Examples of committed actors 🤝
Transparent annual report	Clarity and easier tracking	AXA, Macif, CNP Assurances
Detailed pre-contractual document	Fewer surprises for the saver	La Banque Postale, Allianz, BNP Paribas
Training of advisors	Better support	Generali, Groupama, Avenir Mutuel

Tax implications and points of attention for 2025

The tax aspect remains at the heart of life insurance’s attractiveness, and the Pacte law provides important clarifications. The possibility of internal transfer while maintaining tax oldness avoids unwanted taxation issues. Additionally, transfers to a PER benefit from attractive tax incentives, combining exemption on capital gains and deduction of contributions.

However, it is crucial to recall these key elements:

• ⚠️ The transfer does not eliminate traditional taxation upon redemption later: your contract remains subject to tax rules as before.
• ⚠️ The transfer window to the PER is time-limited, beyond January 1, 2026, this possibility will end.
• ⚠️ Attention to the balance between investment and liquidity: the long-term PER limits access to funds.

It is advisable to thoroughly analyze this with specialized advisors, especially those present in large companies like BNP Paribas or AXA, before initiating these operations. For curious individuals, in-depth analyses are available on specialized sites, notably on the MGEN redistribution or the debates around health insurance economy.

Fiscal element 📊	Before Pacte law ⚖️	After Pacte law 🚀	Practical advice 📝
Maintaining tax oldness	Transfer impossible without loss	Internal transfer with preservation	Consult your insurer
Transfer to PER	Rarely possible	Possible until 2026 with tax advantages	Think long-term
Tax on withdrawals	Traditional taxation	No change	Check before any operation

What strategies to adopt in light of the life insurance reforms?

For savers, the Pacte law offers several levers to optimize their life insurance, but it is still necessary to understand the steps to take. The main challenge is to evaluate the new products offered by insurers like Allianz, Macif, or Groupama, and to decide the right timing for a transfer, an arbitration, or diversification into green funds.

Here are some practical tips:

1. 🎯 Analyze your current contract: identify whether it is old and underperforming, which could motivate an internal transfer to benefit from improved options.
2. 📊 Compare fees and performance: leverage the increased transparency to examine data published by your insurers, whether BNP Paribas, Generali, or CNP Assurances.
3. ♻️ Consider solidarity or green units of account: take advantage of the reinforced information to align your savings with your values, especially through funds offered by La Banque Postale or AXA.
4. 🔐 Consider PERs for a part of your retirement savings: especially if you benefit from significant tax advantages.
5. 🗓️ Pay attention to deadlines: notably the end of the transfer possibility to PER in 2026.

Professional support remains essential. Major market players, such as LCL or Allianz, offer personalized advice tailored to each individual’s situation to avoid costly mistakes. Don’t hesitate to seek further information from your insurer or on specialized platforms like health contribution reimbursements, which also cover life insurance topics.

Practical FAQ about the new features of life insurance under the Pacte law

• ❓ Does internal transferability apply to all life insurance contracts?
  Yes, the extended transferability concerns both single-support and multi-support contracts, provided the transfer is carried out within the same insurer.
• ❓ What are the tax advantages of transferring to a PER?
  The transfer is accompanied by an exemption from capital gains tax up to a certain ceiling and allows contribution deductibility on the PER from taxable income.
• ❓ What does the mandatory publication of euro fund yields mean?
  Insurers must make available online detailed information on guaranteed rates and profit-sharing, for ongoing and old contracts.
• ❓ Why is fee transparency important?
  Better visibility on fees allows savers to compare offers, understand the impact of costs on net yields, and avoid unpleasant surprises.
• ❓ How to learn about green or solidarity supports?
  Insurers must inform before subscription and via annual statements about the portion of savings invested in these supports, providing a tool for informed decision-making.