IMF Staff Country Reports

Luxembourg: Financial Sector Assessment Program—Technical Note on Insurance Regulation and Supervision

Publication Date:

June 24, 2024

Electronic Access:

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Summary:

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.

Series:

Country Report No. 2024/184

Subject:

Anti-money laundering and combating the financing of terrorism (AML/CFT) Crime Financial institutions Financial Sector Assessment Program Financial sector policy and analysis Insurance Insurance companies Solvency

Frequency:

regular