Free Provision
of Services

Life insurance under the Free Provision of Services

Established by the third European Life Directive, the purpose of the Free Provision of Services (FPS) regime is to create a single market in insurance.

The Directive grants all approved insurance companies. established in a member state of the European Union (EU), the benefit of a European passport allowing it to exercise its activity in all the other EU countries without having to be physically established there.

Thus a client resident in one EU country can subscribe a life insurance policy with an insurer established in another EU country. Please note that certain provisions, most notably of a legal and tax nature, must be complied with by both the subscriber and the insurer.

Consequently, the Third Life Directive has created a favourable environment for the constitution of a real European market in life insurance by giving consumers access to a much greater range of products and services to meet their particular needs.

Luxembourg has been chosen by a large number of insurers as the bridgehead for distributing their products under the FPS regime throughout the European Union, which is testimony to sound competence in the field and a highly favourable environment.

Free Provision of Services now represents the largest part of the Luxembourg insurance market, accounting for more than 80% of insurance premiums collected.

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