Before the second half of the 1980s, the insurance sector in Luxembourg was largely focused on the domestic market. With the gradual development of the European internal insurance market and the introduction of the freedom of services regime at the beginning of the 1990s, the Luxembourg insurance market witnessed significant growth, with foreign insurance companies establishing significant operations in the country. The development of the reinsurance business started in Luxembourg with the introduction of the reinsurance law in 1984. This provided large multinationals and financial institutions seeking reinsurance with a stable and reliable regulatory environment. The Grand Duchy of Luxembourg has nurtured its international and European insurance and reinsurance ecosystems ever since, resulting in its position today as one of the main cross-border insurance and reinsurance centres in Europe.
Stability is the cornerstone of any leading insurance business. The insurance sector in Luxembourg has grown hand in hand with Luxembourg’s financial centre, benefiting from its political, economic and fiscal stability and a triple-A rating from all major rating agencies (S&P, Moody’s and Fitch).
As with banks and investment funds, insurance companies rely on Luxembourg’s international talent pool and its unique cross-border financial expertise. These highly skilled multilingual insurance professionals work alongside a workforce experienced in investment fund management. The insurance industry has easy access to all those skills which are so key to the sector, such as risk selection, underwriting and analytics.
Insurance sales teams in Luxembourg speak the client’s language, providing insurance products tailored to clients’ specific needs across the EU, fully in line with local regulations and tax laws. Long-standing cross-border insurance expertise, combined with a competent dedicated regulator results in world-class international wealth solutions and innovative insurance and reinsurance products for demanding corporate and retail clients.
Insurance:
A leading Financial Centre in Europe
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Insurance in Luxembourg
The Luxembourg financial centre provides a wide range of financial services, acting as a bridge between global investors and markets.
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Freedom of Services in the EU
The Freedom of Services regime, introduced by the third EU life and non-life insurance directives and transposed into Luxembourg legislation.
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A Dedicated Insurance Regulator
The recent introduction of the European Solvency II regime in 2016 substantially changed the Luxembourg regulatory framework for the insurance and reinsurance sector.
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An International Life Insurance Hub in Europe
Luxembourg is the leading financial centre for the distribution of cross-border life insurance products in the Eurozone.
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Non-life Insurance Gaining Strong Momentum
Luxembourg’s traditional strengths in the insurance sector have been in the life and reinsurance domains.
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Luxembourg Reinsurance
Luxembourg is the largest captive reinsurance market in the EU. International companies from all over the world have established around 200 reinsurance undertakings in the Grand Duchy.
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Future Challenges for the Insurance Industry
The companies that make up the insurance industry together make up the largest group of institutional investors in Europe.
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