Altcoin News: Bitcoin Enters France’s Massive $2.5 Trillion Insurance Market

April 16, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

There it came to the vote of the French national assembly. Cryptocurrencies are now allowed in France as part of life insurance.

The insurance legislation was changed by the members of the Civil Solidarity Pact. Article 21 allowed life insurance companies to invest in specialized professional funds (SPFs). The foundations of these funds, it was said, have been previously calmed by an additional provision, so that their risk remains moderate.

Article 26 allows the SPF’s to invest in assets based on the blockchain. Simmons & Simmons lawyer Emilien Bernard-Alzias told the local magazine Les Echos:

These 2 clauses make it clear that SPFs can invest in cryptocurrencies like Bitcoin.

The amount of cryptocurrencies that life insurance can hold is not limited. This gives the French the opportunity to increase the value of their life insurance policies in the crypto market.

How did Bitcoin integration succeed?

Nobody should believe that Bitcoin has made the step into the life insurance market from one day to the next. For over a year, politicians have worked with companies to enforce the rule change. The current solution was more of a by-product of the change in the law than the main objective. However, further legal adjustments could follow if France became acquainted with the role of the pioneer. Member of Parliament Joel Giraud is quoted in Les Echos as follows:

While this was not the main objective of the pact, insurers will now be able to offer products based on cryptosystems. This is possible via special funds.

The measure was approved by MEPs by 147 votes in favor, 50 against and 8 abstentions. However, only about one-third of the 577 MPs were present for the vote. Economics Minister Bruno Le Maire was nevertheless satisfied with the results.

“Very happy with the adoption of the law #PACT ! The vote is wide, thank you to the majority for your total support and for all the work that has been done. We are determined to continue transforming our economy,” wrote Le Maire on Twitter.

The life insurance market is immense

The cryptocurrencies included in the Pact Act, even if only indirectly, is a big step.

In France, the market for life insurance has a volume of $2.5 trillion. The French like to take advantage of this market and its offers, as it often brings tax benefits. Both in investment, as well as in retirement, it is popular.

A whopping 40% make out insurance policies on the French budget. Thus, the proportion is higher than that of securities, cash and all other savings products. The good returns of the savings insurance in recent years are also a reason for their high popularity. Now Bitcoin is on board and the French people may be curious.

Author: Marko Vidrih