Insurance companies
Luxembourg has a flourishing insurance market. The principal foreign groups are all present and make full use of the freedom to offer cross border services within the European Union.
A large number of companies are active in the life assurance market, most of which conduct both domestic and international business. However, the principal activity is cross-border sales, which account for over 89% of life assurance premiums.
A number of international insurers have created joint ventures with banks to market life assurance products to their clientele. Luxembourg institutions specialise in unit linked life assurance, which enables clients to combine insurance cover with a return on investment, notably in unit linked policies tied to dedicated investment funds, an instrument that is increasingly used in wealth management.
The property & casualty (non-life) insurance sector has recently experienced rapid growth in its international sales and foreign sourced premiums now account for 70% of total P&C premiums.
Insurance companies are regulated by the law of 6 December 1991 on the insurance sector, as amended, and by the Grand Ducal Regulation of 14 December 1994 in compliance with the amended law of 6 December 1991 on the insurance sector, concerning the conditions for authorisation and carrying on business for direct insurance companies, as amended. They are subject to regulatory control by the Commissariat aux Assurances (CAA).