Each year more than 100 billion euros are invested in life insurance, which remains the most popular placement among wealthier people who are not concerned about fees charged on their investment. However, for the less wealthy, it remains an expensive placement, becoming even more expensive each year, since returns continue to decrease. It turns out that customers are not aware of the fees charged due to the complexity of the contracts. However, according to Philippe Baillot, an insurance mediator, the information provided in these contracts has been improving over the past few years.
What’s more is that the EU has adopted a new regulation on PRIIPs, which obliges those who produce or sell investment products to provide investors with key information documents (KIDs). Nevertheless, according to Guillaume Prache, Managing Director of BETTER FINANCE, this document is incomprehensible. Benoist Lombard, President of the National Chamber of wealth management advisors and executive of Witam Multi Family Office, has a similar point of view, stating that it does not measure the costs, and actually constitutes a huge step backwards.
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