How can we ensure that Luxembourg insurance is better than the competition in ten years' time?
The performance of our sector also owes much to the fact that Luxembourg is recognised as a safe and attractive market, particularly through its legal, economic and financial stability. This requires a collective effort. A close partnership between the sector, the Commissariat aux assurances and the government is needed to attract new players, retain those already present and invest for the long term.
What are the major regulatory challenges today?
"The biggest challenge for our sector is to benefit from regulatory stability, either through clarification and better coordination of existing European regulations, or through a regulatory truce.
One of the most important European challenges, following Mario Draghi's report, is the Savings and Investment Union project. It aims to mobilise European savings to finance the real economy. To achieve this, it will be necessary to simplify access to financial products by putting an end to the complexity of regulation and strengthening financial education for all European citizens.
Let's take the example of the PRIIPs regulation, applicable to packaged investment products. This has led to the introduction of 'key information documents' (KIDs) that are far too complex for non-specialist investors to understand and difficult to apply to life insurance policies, which are much more than financial products. The European Union wants to fit everything into boxes. But a life insurance policy, before being a financial product, is a tool for protecting and passing on assets. This regulatory standardisation, which is often inappropriate, slows down innovation and reduces the diversity of what is on offer, to the detriment of Europe's citizens. Initiatives such as the Retail Investment Strategy could exacerbate this problem, at the expense of savers' real needs.
What levers can accelerate digital transformation?
"The first lever is the regulatory framework. To invest in digital projects, you need a clear and stable environment. These are heavy, long-term investments, so legal certainty is essential. The second lever is to foster a vibrant ecosystem. If Luxembourg can attract or encourage the development of technology players who are familiar with our specific characteristics, the market will be better off. The Aca contributes to this, in particular with the Aca Innovation Awards, which highlight insurtech and fintech start-ups and partners that meet the needs of insurers.
In Luxembourg law on the insurance sector, we were limited by Article 300 on professional secrecy. A new provision allows insurers to use critical IT service providers to outsource certain activities. This paves the way for more innovation.
The European Union wants to fit everything into boxes.
Is outsourcing a strategic lever?
"This is clearly one of the directions we're heading in. The idea is to be able to work with experts to enhance our products and services: better data management, increased personalisation, operational efficiency, etc. The aim is to be able to rely on the best partners, ideally based in Luxembourg. But when the expertise doesn't exist locally, we need to be able to seek it elsewhere, in a secure and transparent regulatory environment.
Doesn't this opening up generate new costs?
"Of course. It's all about finding the right balance: taking advantage of technology and outsourcing while respecting a solid governance framework. You have to keep a close eye on the service providers and the tools they use, to comply with regulations - whether it's the rules on outsourcing, the Dora (Digital Operational Resilience Act) regulation or even the AI Act, which lays the foundations for the future governance of artificial intelligence.
Some new players could disrupt the market with massive use of AI and lighter models. Is this a real threat?
"I don't think so. Our model is unique, based on over thirty years' experience and regulatory expertise that few other markets have. The freedom to provide services and the right of establishment are difficult to implement. The diversity of European transpositions makes day-to-day management highly technical. And AI is no substitute for the human touch. The real challenge is to develop more personalised offerings. This is a dimension that we have already mastered.
Can we remain agile and competitive when we are defending a "bespoke" model, which is more expensive by nature?
"It's a balancing act. Made-to-measure comes at a cost, but that's what sets us apart. Investment in technology and AI must optimise simple tasks so that teams can concentrate on understanding complex needs and providing a quality service. That's what this collective transformation is all about.
In international life insurance, at what level of investment do you enter the Wealth customer base?
"Generally speaking, a Wealth offer starts at 500,000 euros. However, several companies offer policies below this threshold to meet specific needs. Many wealthy customers make gifts to beneficiaries, who then take out a life insurance policy to 'take the date' and gradually build it up. This approach clearly demonstrates the intergenerational continuity of life insurance: a flexible and evolving tool.
Tailor-made solutions come at a cost, but that's what sets us apart.
Is the fall in the entry fee for Wealth contracts an underlying trend?
"Yes. In markets such as France, this dynamic is particularly marked. Luxembourg life insurance has become better known and now attracts a wider customer base. This is due to the diversification of distribution channels: we now work with distributors from networks other than private banks or family offices. The market has clearly opened up.
This opening up also makes it possible to respond to the pressure on prices and margins. How can we maintain the balance between volume and quality?
"By segmenting the offer and improving operational efficiency. AI will make it possible to offer highly personalised solutions for certain customers and more standardised solutions for others, while still remaining distinctive. Luxembourg insurers are already engaged in this movement: the aim is to preserve service quality while widening access.
Non-life insurance and reinsurance are described as growth drivers. How can the insurance industry make its mark on new risks?
"Our players are already very dynamic. Many non-life companies and reinsurers have set up in Luxembourg over the last ten years and are developing innovative products. Their strength lies in their agility and diversity. We are seeing the emergence of cover for cybercrime, digital assets and the consequences of AI. In terms of natural catastrophes, non-life players and reinsurers are connected to the major international networks and are already anticipating market developments. Some are working on risk prevention with their institutional clients and setting up research laboratories, like FM Global at the Cloche d'Or, to better anticipate climatic or technological events.
These players are mainly targeting international groups. Can they expand their customer base?
"This is already happening. Thanks to their partnerships with major European and global brokers, they are now reaching SMEs and private customers. It's crucial to stay connected to global networks while making the most of the country's strengths. These strengths will continue to make the country a key player."
This article was written for Paperjam magazine for the month of December 2025, published on 19 November. The content is produced exclusively for the magazine. It is published on the site to contribute to Paperjam's comprehensive archive.
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