In an environment marked by political and economic instability, asset protection has become a major concern for investors and life insurance policyholders. In this context of growing uncertainty, Luxembourg life insurance policies stand out as a robust solution thanks to their unique "Triangle of Security" mechanism.
This advantage, anchored in the Luxembourg regulatory and prudential framework, offers unrivaled peace of mind to Luxembourg life insurance policyholders.
But how does it work and what are the advantages for your clients?
What is the Triangle of Security?
The Triangle of Security is based on a tripartite agreement between the insurance company, the custodian bank and the Commissariat aux Assurances (CAA), the Luxembourg supervisory authority. This system ensures optimal protection of the assets invested in a life insurance policy, based on two fundamental pillars: legal security and financial security.
Legal security: a protective and stable framework
Luxembourg is known for its solid and stable legal environment. Life insurance policies benefit from enhanced protection under Luxembourg’s prudential framework, including an absolute privilege or “super privilege” for policyholders: the assets linked to the insurance company's commitments form a separate and prioritized estate over any other creditor.
Financial security: strict segregation of assets
The assets underlying life insurance contracts are kept separate from the insurance company’s own assets and those of the custodian bank, thus ensuring their protection even in the event of the liquidation of the insurance company. The CAA, as a proactive supervisory authority, ensures that this segregation is maintained to guarantee policyholders priority access to their funds in the event of failure.
Why is this mechanism so important today?
Unlike other European countries that cap protection (between 25,000 euros and 100,000 euros per policyholder), Luxembourg offers enhanced security through this unique system. In the event of a financial crisis or liquidation, policyholders benefit from priority access to the assets linked to their policy or, under certain conditions, from a transfer in kind.
Benefits for your clients
- Enhanced capital protection
In an environment where confidence in institutions can waver, the Triangle of Security offers unrivalled peace of mind and ensures that the invested capital is protected from financial or legal issues affecting the insurance company or the custodian bank.
- Flexibility and wealth optimisation
In addition to security, Luxembourg policies offer investment diversification and tax advantages, making them ideal for estate planning or wealth transfer.
- Responsiveness to crisis
The proactive role of the CAA, combined with asset segregation, limits the risk of loss, even in the most extreme economic scenarios, such as a bankruptcy.
Why choose Luxembourg in 2025?
As a leading European financial center, Luxembourg combines stability, expertise and innovation. In a world where political and economic tensions are undermining wealth management strategies, Luxembourg life insurance, with its Triangle of Security, is positioned as a shield for your clients' assets. Its flexibility - choice of beneficiaries, customised financial management - also makes it a tool adapted to modern needs.
The Triangle of Security is not just a technical concept: it is a promise of protection and peace of mind for your clients, which is particularly valuable in the current climate. By choosing Luxembourg life insurance, you are offering them much more than a financial product: you are guaranteeing them a bulwark against uncertainty.
Contact us
Our teams are at your disposal to find out how to integrate this solution into your offer or to support you in optimising wealth solutions for your clients.