Luxembourg

The Commissariat aux Assurances (CAA) is the national regulatory body in charge of the insurance, reinsurance, and private pension fund industries only. As an independent body under the authority of the Ministry of Finance, the CAA ensures that there is no breach of the regulations in order to ensure the stability of the market and the protection of the interests of its clients and members. The supervisory mandate of the CAA includes direct insurance companies, reinsurance companies, corporate pension funds, and insurance intermediaries (including brokers and agents). Besides its regulatory role, the CAA also implements European Union directives such as Solvency II and works with international bodies in order to establish Luxembourg as a leading insurance industry center in the world.

CAA is responsible for ensuring that there is stability and integrity within the insurance sector of Luxembourg by licensing, auditing, and ensuring compliance among all insurance firms, reinsurers, and pension funds in Luxembourg. In its role as prudential supervisor, CAA always ensures that these entities are financially sound, their capital is sufficient, and the solvency ratios are at acceptable levels so as to ensure that their obligations in relation to policyholders will be met in the future. CAA issues mandatory circulars, carries out audits, and punishes regulatory infractions while ensuring that insurance intermediaries such as agents and brokers comply with market conduct rules. CAA also protects consumers through its out-of-court dispute resolution mechanism for complainants and enforces a strong AML/CFT framework throughout the insurance industry.