Insurance in Luxembourg, life, non-life, reinsurance, FOS


The insurance sector in Luxembourg


A particularly stable economic, political and social environment, a pool of financial and linguistic competences and uncompromising legislation on the protection of consumer rights explain the attractiveness of Luxembourg to foreign insurers. Indeed, the primary characteristic of this sector in Luxembourg is the presence of leading foreign groups.


Among the factors of this success, the particularly well adapted regulatory environment and the quality of the supervision of the insurance industry are two key points. It is exercised in Luxembourg by the “Commissariat aux Assurances”, an authority dedicated to the insurance sector, in strict conformity with international and community standards. This advanced and secure framework gives customers maximum guarantees.


Insurance under freedom of services from Luxembourg


The European Union has been working since the beginning of the 90’s to create a single market for insurance. This is embodied in the European passport and results in the free establishment of companies and the freedom of services (FOS) within the European area. This construction has been carried out in several stages and is framed by EU instruments.
European consumers can now freely choose their insurance product in any of the countries of the Union.


Luxembourg was chosen by a large number of foreign insurers (French, Belgian, German, British, American ...) as the bridgehead to distribute their insurance products under FOS throughout the European Union, demonstrating a  clear competence in the matter and a favorable and controlled framework.


Luxembourg is a major player in life insurance at the pan-European level. Unlike neighbouring countries and like other countries with a narrow domestic market such as Switzerland, Luxembourg is internationally oriented.

Luxembourg regulator has operated the European directives of the beginning of the 90 years on the freedom of services (FOS) in order to equip the insurers with a framework enabling them to serve other European countries. Today, most of the companies established in Luxembourg who work under FOS regime have more than 20 years of experience, and therefore a unique expertise in Europe.


The reasons for choosing a Luxembourg life insurance are multiple:

  • Protection of single subscribers in Europe;
  • Cross-border expertise;
  • Access to a wide range of underlying assets;
  • Conformity of products to the right of the country of residence of the subscriber;
  • Legal and regulatory framework in line with European directives;


Luxembourg insurance companies which offer solutions under FOS or on an international level have as their sole common denominator, their expertise. This goes from the Luxembourg company to the subsidiary of large foreign group (e.g. French, German or English groups), from a company with 20 employees serving 3 markets to that employing 400 people and servingmore than 20 different markets. They are all subject to the same obligations and supervised by the  same local supervision authority i.e. the ”Commissariat aux assurances”.