A few days ago, Testamento took part in a breakfast briefing organized alongside Deloitte on a topic that was once perceived as highly technical but has now become a major strategic issue for the entire insurance industry: the duty of advice as applied to beneficiary clauses.
The event brought together experts, insurers, and brokerage representatives for a particularly insightful discussion centered around a shared conviction: the beneficiary clause is no longer a simple administrative component but the cornerstone of wealth transfer in life insurance.
As highlighted by our speakers, Anne Lamotte (Covéa Group) and Christophe Hautbourg (PLANETE CSCA), wealth transfer is the primary purpose of a savings contract. The beneficiary clause is therefore its direct and operational expression. Yet this subject remains too often underutilized or insufficiently addressed within advisory processes.
A technical topic that has become a customer advisory and relationship challenge
The discussions highlighted an important reality: talking about wealth transfer inevitably means addressing sensitive topics, sometimes perceived as taboo. However, within the context of life insurance, clients generally accept and understand these conversations because they are directly linked to the purpose of the contract itself.
By contrast, discussing inheritance or succession planning within other everyday insurance products can be more challenging. This difference underscores the unique nature of the beneficiary clause in life insurance: it is simultaneously technical, legal, and deeply connected to the client’s long-term financial planning objectives.
A duty of advice under pressure and rapidly evolving
The conversations also shed light on a major transformation in the advisor’s role.
Today’s clients arrive significantly better informed, sometimes after consulting artificial intelligence tools or generative AI platforms to prepare questions or explore potential solutions. This new reality is reshaping the advisor’s responsibilities, requiring them not only to recommend solutions but also to explain, validate, and, when necessary, correct decisions influenced by automated recommendations.
In this environment, the duty of advice becomes more critical than ever. It is no longer simply about proposing a solution, it is about ensuring that the solution is appropriate, compliant, and genuinely aligned with the client’s circumstances.
From backlog to new business: a strategic challenge for insurers
Another key theme emerged during the discussions: the quality of beneficiary clauses depends not only on managing existing portfolios but also on ensuring the quality of newly created clauses.
The more accurately clauses are drafted at the time of subscription, the stronger and more efficient the overall system becomes. This requires greater integration of beneficiary clause management within advisor workflows, as well as within digital self-service journeys, ensuring continuity between physical and digital channels.
Several mutual insurers and insurance groups are already actively working on this integration by redesigning their subscription and policy management processes to better incorporate beneficiary clauses throughout the contract lifecycle.
Presentation of our new white paper: 20 million beneficiary clauses to bring back into compliance
During the event, Testamento also presented its new white paper, developed in collaboration with Deloitte:
“20 Million outdated or erroneous beneficiary clauses: How to take effective action across your portfolio”
The report highlights a major market challenge: an estimated 20 million beneficiary clauses in France are currently outdated or improperly drafted, exposing insurers and financial institutions to significant regulatory, operational, and commercial risks.
The white paper also provides practical recommendations for turning this challenge into an opportunity, not only to improve compliance, but also to enhance performance and strengthen customer relationships.
A collective momentum around the duty of advice
We would like to thank Deloitte for organizing this valuable exchange, as well as all the speakers for the quality and depth of their insights.
Several highly practical perspectives emerged from the discussions, confirming a strong market trend: the beneficiary clause is becoming a central component of the duty of advice and a key indicator of maturity for insurance organizations.
