The 13th edition of the ACA Insurance Day took place on November 27, 2025, at the heart of the European Convention Center Luxembourg (ECCL). As a key highlight in the insurance sector’s calendar, the event brought together the industry community for a shared reflection on the major challenges ahead. Amidst growing competitiveness in an uncertain environment, rapid technological advancements, and evolving regulatory frameworks, this year’s edition was marked by in-depth dialogue between market players, regulatory authorities, and experts.
Opening the 13th edition, the plenary session of the conference segment titled “Luxembourg at the heart of European insurance: staying competitive in a tense global environment” set the tone for the day’s discussions. Through the intersecting perspectives of industry experts, the debates explored the major transformations reshaping the European insurance landscape: regulatory pressure, geopolitical instability, persistent inflation, as well as opportunities linked to digitalisation, innovation, and the prospect of long-awaited regulatory simplification.
“In a turbulent world and an unsettled Europe, our collective challenge is clear: to remain competitive without losing what makes our model strong.” Valérie Tollet, Deputy CEO at ACA
In a disrupted world, this plenary session offered a cross-analysis of geopolitical tensions, regulatory shifts, and their impact on the Luxembourg economy and the insurance sector.
The discussions first highlighted the shift in the European paradigm: in an era of global power dynamics, the European Union can no longer rely solely on its normative strength. It must now combine regulatory efficiency, strategic autonomy, and economic attractiveness. Luxembourg, for its part, is called upon to defend its model within this new balance, while remaining agile both legislatively and operationally.
The speakers emphasized that this transformation requires a collective effort toward simplification.
The European Commission’s so-called “omnibus” initiatives were seen as a first step yet still too timid in the face of a heavy and costly regulatory culture. The speakers stressed the urgent need to rationalize administrative requirements in a context where over-regulation hampers innovation and significantly increases operational burdens, especially for international players based in Luxembourg.
Another key concern: the country’s competitiveness in relation to other European financial centers.
Specific constraints in Luxembourg such as professional secrecy in insurance and the automatic indexation of wages were identified as major obstacles, both to technological integration and to the budgetary clarity of international groups. Added to this are the challenges related to the freedom to provide services, with protectionist practices still too prevalent in several Member States, weakening the single market.
Despite these challenges, the speakers defended the many strengths of the Luxembourg financial center: political stability, a dense and interconnected financial ecosystem, and a strong reputation for security. They emphasized that in a context of global instability, these elements make the Grand Duchy a genuine safe haven for investors. The insurance sector is seen not only as a source of stability, but also as a driver of future growth provided it enhances its clarity, adapts its value proposition, and evolves how insurance products are perceived in comparison to other investment options.
In conclusion, this plenary session called for a collective mobilization to preserve the agility, openness, and relevance of the Luxembourg model in a Europe undergoing transformation.
The message is clear: staying competitive also means knowing how to evolve.
Generative artificial intelligence is no longer just a trend it is now a tangible force for transformation. This roundtable highlighted the first real-world applications implemented in the sector: automated underwriting, intelligent claims management, and personalised customer engagement. Beyond the excitement around the technology, speakers addressed integration challenges, ethical considerations, and the broader impact on roles and professions within the industry.
Far from the hype, this session offered a realistic overview of how generative AI is being adopted in the insurance sector. The speakers unanimously acknowledged the accelerating pace of digital transformation, while emphasizing the need to move from experimentation to structured integration. AI is increasingly seen not just as a driver of competitiveness, but as a long-term survival issue, as technological and market pressures continue to grow. The use cases presented demonstrated the technology’s wide-ranging impact: claims processing automation, underwriting optimization, predictive client retention analysis, and internal conversational agents. AI enables companies to reduce low-value tasks and redirect human resources toward more strategic roles.
However, this shift requires strong governance, careful data management, and significant upskilling. The panel also flagged critical challenges such as model explainability, evolving regulatory frameworks, and adoption across multigenerational workforces. While the overall tone was optimistic, it came with a clear call for prudence, ethics, and investment in agile infrastructure. The insurance sector of tomorrow is taking shape around an AI that doesn’t replace humans but enhances them.
This roundtable addressed a central question: how can we build a regulatory framework that is clearer, more proportionate, and more effective without compromising policyholder protection? By analysing upcoming major reforms (Solvency II, the Retail Investment Strategy, ESG reporting), experts discussed the potential for genuine regulatory modernisation that could enhance the competitiveness of the Luxembourg insurance sector.
“Simplifying does not mean deregulating. It means seeking greater clarity, coherence, and efficiency for the benefit of all stakeholders… including policyholders.” Emmanuelle Mousel, Partner, Arendt & Medernach SA, panel moderator
In a context where regulatory requirements continue to multiply, this panel tackled a central question: how can we build a regulatory framework that is clearer, more proportionate, and more effective without weakening the foundations of the European insurance system? The speakers unanimously acknowledged the strengths of the existing framework particularly Solvency II while denouncing a regulatory inflation that threatens the sector’s clarity, stability, and competitiveness. The so-called “regulatory layer cake,” resulting from a proliferation of European initiatives without genuine coordination, was identified as a major obstacle to innovation and operational efficiency, especially for mid-sized organisations.
The discussion also highlighted a growing sense of inconsistency across different texts (particularly in the area of sustainability), as well as a lack of visibility regarding their practical implementation. The European Commission’s recent decision to suspend the adoption of numerous delegated acts was cited as a clear example of this legal uncertainty, which generates confusion for market participants. Behind the political rhetoric of “simplification,” professionals primarily see increasing complexity often disconnected from on-the-ground realities.
Despite this critical assessment, the sector is not calling for deregulation, but rather for a fundamental shift in the approach: greater coherence, better alignment between regulatory levels, and above all, earlier and deeper involvement of industry professionals in the decision-making process. To navigate the transitions ahead technological, environmental, and demographic insurers need a regulatory framework that is robust, yet predictable and understandable. A regulation that clarifies rather than obscures.
During the ACAdemic Session, Nicolas Limbourg, President of ACA, opened his address with a powerful metaphor: a journey through the landscape of European insurance, aboard a sector whose strength lies in its resilience, expertise, and capacity for innovation. This journey also served as an opportunity to reaffirm the key priorities of the Luxembourg insurance sector in the midst of a rapidly evolving international context.
Nicolas Limbourg opened his address by highlighting the scale and structural role of the insurance sector in Europe: according to figures published by Insurance Europe, European insurers employ over 920,000 people and manage nearly €9.5 trillion in assets. In Luxembourg, as of the end of 2024, the investments held by life and non-life insurance companies totalled €294 billion, allocated to businesses, infrastructure, and the energy transition.
In other words, the insurance sector ensures both long-term economic stability in Europe and the security of its passengers namely, the policyholders.
Each year, European insurers pay out more than €1 trillion in benefits to their policyholders that’s approximately €3 billion every day.
At the national level, Luxembourg non-life insurers paid out €9 billion in claims, including €780 million to cover risks specific to Luxembourg among them, those linked to natural disasters. According to reinsurers’ reports, 2024 ranked as the third most costly year for natural catastrophes since 1980. These events caused $320 billion in global economic losses, of which $135 billion were insured.
Nicolas Limbourg praised the concrete actions taken by insurers in response to climate-related events, citing, in particular, the measures implemented following the 2021 floods, as well as the €8 million in compensation paid out after the heavy rainfall of September 8, 2025.
“Europe must turn its intentions into concrete actions so that our companies remain competitive and the single market can fully play its role.”
At the European level, the President highlighted the need for a more transparent and stable regulatory framework. While some recent initiatives are moving in the right direction, he voiced concerns about a European regulatory environment that is often overly complex and poorly adapted, lacking clarity and introducing redundant controls through an ever-growing number of supervisory authorities.
Continuing his address, the President highlighted Luxembourg’s strategic positioning as an open, international, and forward-looking financial centre. He welcomed the initiatives already undertaken by national authorities to support this dynamic ranging from incentive-based tax measures and support for technological innovation, to the creation of a Master’s degree in actuarial science, a joint effort by the ACA, the Ministry of Finance, and the University of Luxembourg.
However, this favourable framework must continue to evolve. The President therefore called for ongoing efforts to meet the growing needs in terms of talent attraction and retention, infrastructure, and the development of local skills.
He also addressed the challenges related to the modernisation of supplementary pension schemes, given the ongoing albeit postponed challenge of financing first-pillar pensions. He emphasised the opportunity presented by adapting the second and third pillars to offer policyholders greater flexibility and long-term investment prospects.
Beyond institutions, Nicolas Limbourg reminded attendees that the sector’s competitiveness also depends on the ability of its stakeholders to pool their efforts around shared challenges. He encouraged ACA member companies to continue engaging actively in the association’s working groups, to share their expertise, and to act in a coordinated manner on non-competitive matters. Sector-wide unity was presented as a key lever for collectively addressing the challenges that lie ahead.
“Like members of the same squadron, we know we move faster and further when we fly together.”
In closing his speech, the President called on companies to continue their modernisation efforts, strengthen their operational efficiency, and invest in sustainable finance.
He emphasised that customer experience, trust, and societal impact must remain at the heart of corporate strategy.
Nicolas Limbourg shared a powerful metaphor to illustrate the unity of the sector:
“The insurance and reinsurance sector is a fleet made up of diverse aircraft varying in size and engine power but all flying under the same national colours.”
Despite a constantly evolving environment, the course is set: guiding companies towards greater agility, digitalisation, and sustainability, in the service of policyholders and the European economy.
In his address, Gilles Roth, Minister of Finance, reaffirmed the central role of the insurance sector in Luxembourg’s economy, praising its function as an “anchor of stability” in the face of multiple contemporary crises. For the Minister, insurance turns uncertainty into opportunity and shocks into manageable risks. He highlighted the vital connection between the financial centre, the real economy, and citizens’ everyday lives a cornerstone of the government’s strategy.
On the reform front, the Minister presented a concrete overview of the measures taken to strengthen the country’s attractiveness: reduction of corporate tax, incentive-based tax regime for talent, digitalisation of public borrowing through the issuance of a DLT-based certificate, reform of insurance confidentiality, and the modernisation of the “Article 111bis” pension product. He stressed the need for European regulation to be “less abundant but more effective,” criticising the adverse effects of centralised supervision and excessive complexity.
Finally, Gilles Roth highlighted Luxembourg’s commitment to trustworthy artificial intelligence, supported by an unprecedented strategic partnership with Mistral AI. He encouraged the sector to embrace AI as a strategic lever, while ensuring that final decision-making remains firmly in human hands. The Minister concluded by reaffirming his support for an open, innovative, and stable single market one in which Luxembourg insurers have a leading role to play in addressing the climate, technological, and social challenges of tomorrow.
Marc Hengen, CEO of ACA, took the floor to speak about the ongoing transformations in the sector and within the association itself. He praised the collective momentum driven by ACA members and highlighted the importance of constructive social dialogue, particularly in a context where social and economic balances are continuously shifting.
His speech was also the occasion to announce the creation of a chair in actuarial science at the University of Luxembourg, in partnership with the Ministry of Finance an initiative aimed at training the experts of tomorrow locally and responding to the market’s growing need for specialised skills. Finally, he highlighted the arrival of new team members at ACA, reflecting a clear commitment to strengthening human resources in order to better support its members in the years ahead.
Artificial intelligence has become a central topic for many ACA members and a broader societal issue as well. Process automation, intelligent data processing, and service personalisation: AI is already transforming the insurance sector, while also raising important ethical, regulatory, and sovereignty-related questions. These topics were widely debated during the afternoon breakout sessions.
It was in this context that the ACAdemic Session welcomed a brief presentation from Mistral AI, a French company founded in 2023 and recently engaged in a strategic partnership with the Luxembourg government. Mistral shared its vision for a European AI transparent and sovereign designed to meet the highest standards of security, compliance, and data control. Before a highly engaged audience, its representatives showcased real-world applications for the insurance industry: automated underwriting and claims handling, conversational agents to enhance customer relations, and intelligent document processing. While emphasising the need for clear governance, Mistral reiterated that AI should not replace human expertise, but rather enhance it empowering the sector to become more efficient, responsive, and differentiated.
The ACA Insurance Day 2025 reaffirmed Luxembourg’s leading role in shaping a more competitive, responsible, and innovative European insurance landscape. In a context of profound transformation, the sector demonstrated resilience, clarity, and strong engagement. The ACA will continue to serve as a facilitator, an incubator of ideas, and the voice of the sector supporting its members as they navigate the challenges ahead.
