Luxembourg’s insurance professionals have decades of experience developing solutions to meet the challenges faced by multinationals and highly mobile world citizens.
As with banks and investment funds, insurers rely on Luxembourg’s international talent and expertise. Sales teams speak the client’s language. They also know how to provide insurance products to clients across the EU, which are fully in line with local regulations and tax rules.
Home to 88 insurance and 216 reinsurance companies
A dedicated regulator
The regulatory environment and quality of supervision are two key reasons why international insurance companies continue to choose Luxembourg as their EU base.
Luxembourg-based insurers are overseen by the Commissariat aux Assurances (CAA), Luxembourg’s dedicated insurance regulator.
Enforcing strict conformity with international and EU standards, Luxembourg provides an advanced and secure framework which guarantees customers maximum security.
"A stable and agile environment is extremely important and that’s what motivated our choice to locate our business in Luxembourg.”
The highest level of investor protection
Luxembourg’s ‘triangle of security’ offers an extra degree of investor protection, unique in Europe.
The triangle has three elements:
- The regulator must approve the choice of the insurer’s custodian bank and can freeze the assets of a life insurance company in the event of a risk.
- A tripartite agreement between the insurance company, the regulator and the custodian bank specifies that the custody of assets is governed by all three parties. Furthermore, assets linked to life insurance contracts must be separated from the insurance companies’ other assets and be deposited in a separate bank account.
- The custodian bank must also separate assets linked to life insurance contracts from other assets.
In addition to the triangle of security, Luxembourg boasts the ‘Super Privilege’ guarantee. This ensures that holders of insurance contracts have a preferential claim over all other involved parties in case of default.
Life insurance: A sophisticated wealth management
Life insurance contracts are an important part of Luxembourg’s international wealth management offering.
Through the designation of third-party beneficiaries (single or multiple), policyholders can specify the transfer of wealth over their lifetime to any beneficiary, in any amount. Even unborn children can be designated beneficiaries.
Reinsurance
Luxembourg is a major centre for captive reinsurance.
In recent years, leading international non-life insurers have set up their EU continental hub in Luxembourg in order to serve their European clients, including Swiss Re, AIG, FM Global, CAN Hardy, Hiscox, RSA, Liberty Mutual as well Japanese Sompo International, Tokio Marine and Aioi Nissay.
largest captive reinsurance centre in Europe with a regional market share of 24%.
captive reinsurance companies on behalf of firms originating from 40 countries.
