Luxembourg Life Insurance

An Internationally renound centrer of expertise 

In addition to its economic, financial and political stability, Luxembourg is recognised as a major financial centre with unique expertise and know-how in Europe and internationally. Luxembourg's regulation, which is one of the strongest and most responsive in Europe, offers clients advantages and strong protection of their investments with a regulatory framework favorable to the development of life insurance. 

One of the most important advantages of a life insurance contract taken out with a Luxembourgish insurance company is the system of protection of insurance claims called the "Triangle of Security". This triangle of security  involves three actors: the insurance company, the custodian bank and the Commissariat aux Assurances (CAA). It offers a unique legal protection for insurance creditors in Europe.


  • One of the only countries in the world to boast a triple A credit rating
  • Growth consistently above the EU average
  • One of the world’s most stable countries, both politically and in terms of security


  • Luxembourg’s tax neutrality, which avoids double taxation
  • Contracts adaptable to the tax regime of the policyholder’s country of residence
  • Unique protection of policyholders’ assets through the “Triangle of Security” and “Super-Privilege” mechanism


  • 1st cross-border distribution center for life insurance in Europe
  • 1st international private banking center in the Eurozone
  • 1st center for the domiciling, administration and distribution of investment funds in Europe, and 2nd worldwide after the US
  • Pioneer in the launch of the world’s first world stock exchange dedicated to green investment
  • Tailor-made investment models in life insurance via Collective Internal Funds (CIF), Dedicated Internal Funds (DIF) and Specialised Insurance Funds (SIF)

Unique protection in Europe 

Luxembourg life insurance contracts are subject to specific regulations unique in Europe. All life insurance assets must be deposited with a custodian bank approved by the Commissariat aux Assurances (CAA), the official regulatory authority responsible for the supervision of the insurance sector in Luxembourg. Asset deposits are governed by a tripartite agreement between the Luxembourg insurance company, the custodian bank and the CAA, hence the term “Triangle of Security”. Life insurance assets are segregated from the insurance company’s other assets, and deposited in separate bank accounts. The custodian bank must also separate the life insurance company’s insurance contract assets from the bank’s other assets. This mechanism protects the policyholder’s deposits in the event of the insurer’s bankruptcy, and even in the event of default by the custodian bank.

  1. Tripartite Agreement: the Security Triangle is a tripartite relationship between the insurance company, the depositary bank (which will hold the assets of the subscriber/s) and the Commissariat aux Assurances (Luxembourg regulator in the insurance sector).

  2. Ongoing monitoring: asset closures are monitored quarterly by the AAF. In the event of default by the insurer, the supervisory authority has the possibility to freeze the accounts to protect the rights of the policyholders.

  3. First lien: called "super-privilege", it allows insurance creditors to recover in priority to any other creditor of the insurance company - notably the State, employees and social security bodies - the claims relating to the execution of their insurance contracts.