Situated at the heart of Europe, the Grand Duchy of Luxembourg is today the leading European centre for investment funds, the Euro zone's largest centre for wealth management. It is also an important centre for and a major player in insurance and reinsurance.
Thanks to the stability of its political, economic and social situation, and to a modern legal and regulatory framework, particularly favourable to business, Luxembourg offers participants to the finance industry of the European Union an environment allowing products and services to be custom-made for an ever more demanding international clientele.
Luxembourg has been able to profit from its central position at the heart of Europe, and offers particpants to and customer of its finance industry multiple advantages:
- a high degree of security and protection;
- international, multilingual expertise;
- tax neutrality vis-à-vis private individuals not resident in Luxembourg;
- the ability to adapt quickly to regulatory developments and market needs;
- regulatory and supervisory authorities that listen to professionals, favouring development and adaptations to the market.
The Luxembourg financial centre has thus established itself over the years as a location of choice for distributing financial products, notably insurance products. Distribution might be from a local establishment or under the Freedom to Provide Services regime of the European Union. Most major international insurance groups distributing life insurance products from Luxembourg have chosen to do so under the free provision of services regime of the European Union.
Those insurance companies established in Luxembourg have specialised in the provision of life insurance linked to investment funds. Such contracts allow clients to combine insurance cover with investment potential, most notably by means of life insurance policies linked to dedicated funds. Dedicated Funds are increasingly recognised by financial planners as core tools in wealth management.
Furthermore, investors employing life insurance policies via Luxembourg insurers benefit from their cross-border expertise, a resource unique in Europe.