The insurance sector in Luxembourg is very large and serves as a European hub, specifically in the non-life (re)insurance sector and in unit-linked life insurance. Sector assets equaled EUR 289bn in June 2023, corresponding to 372 percent of GDP, significantly higher than in other European peers, Luxembourg insurance business is conducted mainly cross-border, both in the life and the non-life sector. The sector’s international role has been strengthened further after the Brexit vote when several U.K. insurers resettled to Luxembourg to continue cross-border business in the EEA through the passporting system. Business underwritten for domestic risks represents only 6 percent of the sector’s total technical provisions. Both the life and the non-life sector have undergone some consolidation recently, and most Luxembourgish insurers are subsidiaries of foreign groups.
- Format
- Paper
- Frequency
- regular
- ISBN
- 9798400278846
- ISSN
- 1934-7685
- Pages
- 34
- Published in
- United States of America
- Series
- Country Report No. 2024/184
- StockNumber
- 1LUXEA2024007
Table of Contents
- Glossary 5
- Executive Summary 6
- Introduction0F 8
- Insurance Market Developments2F 9
- Institutional and Regulatory Setting 19
- A. Institutional Set-Up of Insurance Supervision 19
- B. Enforcement 21
- Main Findings 22
- A. Solvency II Implementation 22
- Capital Adequacy 23
- B. Supervisory Review and Reporting 25
- Reporting 25
- Supervisory Review 25
- C. On-Site Inspections 26
- D. Governance, Internal Controls, and Risk Management 26
- E. Reinsurance 28
- F. Consolidated Supervision and Supervision of Cross-Border Business 28
- G. Macroprudential Supervision 29
- H. Conduct of Business and Consumer Protection 30
- I. AML/CFT Supervision 32
