Policyholder Association

In the context of life insurance contracts and Pension Savings Plans (PER), policyholder associations play a central role in the structuring and governance of so-called group or collective contracts.

Definition and General Role

A policyholder association is a non-profit legal entity, generally established under the French 1901 law on associations, whose purpose is to subscribe to a collective insurance contract with an insurer for the benefit of its members, referred to as members or participants.

In this framework:

• the association is the policyholder of the contract with the insurer;
• the members of the association are individuals who adhere to the contract and become insured persons;
• the insurer underwrites the risk and manages the contract from a technical standpoint.

This model is widely used for retail life insurance contracts and individual PER products.

Why Use a Policyholder Association?

The use of a policyholder association serves several purposes:

• Pooling and representation of members’ interests
  The association collectively represents savers vis-à-vis the insurer.

• A secure legal and regulatory framework
  The collective contract is entered into within a framework clearly defined by the French Insurance Code and the Monetary and Financial Code.

• Contract stability and continuity
  Contractual terms are governed by specific rules and cannot be unilaterally modified by the insurer without complying with applicable procedures (information of members and, in some cases, approval by the association).

• Improved contractual conditions
  The collective nature of the contract may allow the negotiation of more favorable fees, management options, or investment supports.

How It Works for Members

When a saver wishes to take out a life insurance contract or a PER linked to an association:

1. They join the policyholder association (membership is generally automatic and free of charge).
2. They adhere to the collective contract subscribed to by the association.
3. They become an insured person and benefit from the guarantees of the contract.

The member maintains a direct relationship with the insurer for the day-to-day management of their contract (contributions, arbitrage, withdrawals, management options, etc.), with the association not intervening in individual management.

Main Responsibilities of the Association

A policyholder association typically carries out the following responsibilities:

• Subscription and monitoring of the collective contract with the insurer;
• Representation of members’ interests vis-à-vis the insurer;
• Information of members regarding the life of the contract (changes, updates, annual reports, etc.);
• Oversight of the proper execution of the contract, in line with the insurer’s commitments.

The association may be consulted in the event of significant changes to the contract (fees, guarantees, investment supports, management options).

Product-Specific Considerations

Life Insurance

Policyholder associations have historically been widely used for so-called “associative” life insurance contracts. They provide an additional layer of protection for policyholders.

Pension Savings Plan (PER)

Individual insurance-based PER products are, in most cases, structured as collective contracts with individual membership, subscribed to by an association, in accordance with the regulatory framework introduced by the PACTE Act.

A Governance Role, Not Financial Management

The policyholder association:

• does not manage assets,
• does not make individual investment decisions,
• does not intervene in the personal choices of members.

Its role is primarily one of governance, representation, and collective protection of policyholders’ interests.