Regulatory updates for life insurance: how to deal with unclaimed contracts
Insurance companies have a growing number of insurance contracts which have been inactive for several years, incurring substantial costs and facing administration issues. It is usually difficult to terminate or transfer these contracts because clients cannot be located and beneficiaries are unknown or difficult to find.
The Luxembourg Parliament is currently debating draft bill n°7348 on dormant bank accounts, dormant bank safes, and unclaimed insurance contracts to solve this challenging issue. The main features of the draft legislation are:
- insurance companies will need to meet several deadlines in order to properly anticipate and manage unclaimed contracts
- insurers will be able to transfer the assets under these contracts to the Caisse de consignation.
For more information about how to manage unclaimed contracts (or avoid them in the first place), implementing appropriate processes, and dealing with assets, join our podcast with Charles Cahoua, Adrien Pierre and Michael Schweiger.
Adrien PierreSenior Associate Attorney at law / Avocat à la Cour
Adrien Pierre, senior associate, is a member of the Banking & Finance Practice Group in our Luxembourg office. He advises banks, asset managers, fintechs, payment institutions, insurance companies and other financial institutions on regulatory matters.T: +352 466 230 523 E: [email protected]
Michael SchweigerLocal Partner Attorney at law / Avocat à la Cour / Solicitor
Michael Schweiger, local partner, is a member of the Banking & Finance practice group in our Luxembourg office. He leads the Luxembourg financial regulatory team and regularly advises banks, e-money and payment institutions, insurers, and other clients regarding financial regulation.T: +352 466 230 520 E: [email protected]
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