INSURANCE
Insurance companies under Luxembourg law are governed by numerous Luxembourg and European laws and regulations.
We assist insurance companies at the due diligence stage, as well as throughout the approval procedure with the Luxembourg supervisory authority, the Commissariat aux Assurances.
In addition to the multitude of regulatory requirements under the prudential supervision of the supervisory authority, the Commissariat aux Assurances, and the European Insurance and Occupational Pensions Authority (EIOPA). The law also requires players in the insurance sector to respect insurance secrecy, and to comply with obligations relating to the fight against money laundering and terrorist financing ("AML") for unclaimed contracts and inheritance-related difficulties.
A complex law in a Community market
Insurance law has become a technical and complex field, for insurance companies, insurance intermediaries and policyholders alike.
In many respects, the intervention of a specialist is becoming necessary in the fields of regulatory affairs, corporate governance, compliance, reporting and, more generally, prudential supervision, especially as the multitude of transnational operations are governed by competing laws.
Life insurance advice and litigation
The firm's partners have developed a recognized practice in the life insurance sector for over 25 years, in both advisory and litigation matters. We assist and advise players in the insurance industry (insurers, brokers, policyholders and insureds). The firm's expertise covers the full range of activities of all players in the insurance industry.
The firm advises and provides expertise in the life insurance sector for insurance companies on topics such as:
- life insurance company regulations,
- claims analysis and provisioning,
- drafting of the numerous procedures required to conduct insurance business,
- analysis of eligible underlying assets and asset management,
- internal insurance funds and external insurance funds,
- financial management,
- contract drafting,
- distribution of insurance products,
- relations with insurance intermediaries,
- distribution networks,
- settlement of all disputes arising from the activities of a life insurance company
Financial law aspects
A life insurance policy is not only a means of providing for the future, it is also a savings vehicle. The life insurance sector has been developing for many years alongside the Luxembourg financial market and the opportunities offered by the Luxembourg financial centre. In the Grand Duchy of Luxembourg, life insurance policies may be denominated in euros or another currency, or in units of account. The firm has expertise in the financial aspects of the life insurance contract, in particular the assets underlying the contract, which may be backed by :
- internal investment funds, either collective or dedicated to the insurer. These collective internal funds (FIC), dedicated internal funds (FID) or specialized insurance funds (FAS) fall under the insurance sector regime. The types of assets underlying internal investment funds are strictly regulated: bonds, with issuers from several jurisdictions, bond-type structured products, equities with issuers from several jurisdictions, equity-type structured products, UCITS, alternative funds, other types of assets such as real estate funds, sight, notice or term accounts;
- investment funds external to the insurer. These external funds, which are subject to financial regulations, may be UCITS, simple hedge funds or funds of hedge funds, or real estate funds.
The provisions of Luxembourg law as a whole mean that the life insurance contract is one of the most successful in the EU, offering a high level of protection for investors, while maintaining flexibility in the design and management of the assets underlying this type of contract.
A credit instrument
Life insurance is best known as a savings instrument, but it can also be used as a credit instrument for the policyholder or the beneficiary of insurance benefits. In fact, pledging, delegation, assignment or designation of the creditor as beneficiary of the benefits enable credit transactions to be set up. Given the variety of ways in which insurance can be used as collateral, choosing the right solution requires a precise analysis on a case-by-case basis.
NON-LIFE INSURANCE
In addition to life insurance, we have also been active in non-life insurance for over 25 years.
Non-life insurance law has become a multi-faceted field, as the diversity of insurance types develops in step with societal evolution. Although non-life insurance contracts share common features, each type has its own specific rules and regulations. For the insurance company, for insurance intermediaries and for the policyholder, it requires more and more advice. In many respects, the intervention of a specialist has become indispensable, all the more so as the multitude of transnational operations is governed by competing laws and/or Community law.
Property and casualty insurance includes motor, home, fire and other liability insurance (construction, professional and operational liability).
However, as the nature of risks continues to diversify, we are able to advise on a wide range of subjects, including tax risk, shipping and aviation, cyber risk, directors' and officers' risk, medical and pharmaceutical liability, industrial risks and art insurance.
These risks can occur in any business sector.
We support you from the design of insurance products and their distribution, through the negotiation of insurance contracts and even the filing of claims, to the expert appraisal stage and all the way through the claims settlement procedure, or even before the courts.
Traditionally, a distinction is made between property and casualty insurance and personal insurance. The former include motor, home and commercial fire insurance, as well as other liability insurance (ten-year, professional and operational liability). Personal insurance covers life, death, illness and disability.
However, the nature of risks is constantly growing to keep pace with societal evolution, and we are able to advise on a wide range of subjects, including tax risk, transport, cyber risk, etc.
VILRET & PARTNERS - Attorneys at law
71, rue de Gasperich L-1617 Luxembourg
info@vilret-partners.lu
Phone : + 352 26 10 39 96
Fax: + 352 26 10 39 97
Mobile: +352 621 20 82 94