Key Takeaways from the ACA Insurance Day 2024

On November 21, 2024, the ECCL hosted the 12th edition of the ACA Insurance Day. Over 750 professionals from the insurance and reinsurance sectors, as well as the ACA community, gathered for a day dedicated to exploring current challenges, showcasing innovations, and strengthening ties within the industry.

Roundtables to decipher industry trends

The afternoon began with a plenary session and continued with 3 thematic panels, each exploring issues crucial to the future of our sector.

Plenary session: Future prospects for the Luxembourg insurance and reinsurance sector

Gathered at the ACA Insurance Day, Tom Théobald (CEO – Luxembourg for Finance), Thierry Flamand (Chairman of the Management Committee – CAA (Commissariat aux Assurances)), Marc Lauer (CEO – Foyer Group), and Lize-Mari Barnes (Managing Director – SwissRe) shared their insights on recent developments and upcoming challenges for Luxembourg’s insurance and reinsurance sector. Reflecting on the sector’s evolution, they highlighted the key milestones that have positioned Luxembourg as a strategic hub for international insurance.

The discussions also addressed the challenges posed by the increasing complexity of European regulations, emphasizing the need to balance consumer protection with international competitiveness. Panelists highlighted pressing issues such as the growing frequency of natural disasters, demographic shifts, and the integration of technologies like artificial intelligence, which are essential to tackling future challenges and seizing new opportunities.

By leveraging its agility and expertise, Luxembourg is well-positioned to continue evolving as a key player in insurance and reinsurance, meeting the rising expectations of markets and regulators alike.

🔗 Click here to read a dedicated article on this roundtable.

Round table: Consumer protection: shared objectives between regulator and market

Pierre-Michaël de Waersegger (Partner – Arendt & Medernach), Yves Baustert (Member of the Executive Board – CAA (Commissariat aux assurances)), Xavier Bové (European Affairs Adviser – ACA), Octavie Dexant (CEO – AXA Luxembourg & AXA Wealth Europe) and Nicolas Limbourg (CEO – VITIS LIFE) explored the challenges of balanced, effective consumer protection at the round table entitled “Consumer protection: the quest for shared objectives between regulator and market”. The round table highlighted the fact that the regulator and the market share the same objective in terms of consumer protection. Discussions highlighted the need to establish a framework that protects customers while preserving the sector’s competitiveness. Among the solutions discussed, the importance of prevention, financial education and regulation adapted to the specific features of Luxembourg products was particularly emphasized. The experts also stressed the role of communication and transparency in boosting customer confidence, while calling for continued close consultation between all stakeholders to build pragmatic and sustainable solutions.

Round table: AI: transforming the sector – an essential strategic asset

During the roundtable “AI: Transforming the Sector – Strategic Asset or Challenge?”, Sylvia Pucar (Insurance Leader and Audit Partner – PwC Luxembourg), Loïc Le Foll (Head of Wealth Management at AG2R LA MONDIALE Group and CEO of La Mondiale Europartner), Pierre Nemeth (CEO & Co-Founder – SOPIAD), and Jean Louis Schiltz (Senior Partner – Schiltz & Schiltz, Attorneys at Law) explored the opportunities and challenges associated with adopting artificial intelligence in the insurance sector, particularly generative AI.

By examining the range of possibilities, the discussions highlighted the strategic impact of AI in enhancing operational efficiency, optimizing risk management, and enriching customer experience. However, several challenges were identified, including the availability of skilled professionals as companies simultaneously aim to transition to AI and the significant investment costs associated with AI technologies, potentially requiring collaborative initiatives at the national level.

The speakers emphasized the importance of ethical and responsible implementation, particularly in addressing governance issues, algorithmic biases, and data protection. The roundtable further underscored that AI will not replace humans but rather complement them, highlighting the need for enhanced employee training to maximize the benefits of these tools.

Finally, the panelists called for a clear and pragmatic regulatory framework while expressing optimism about the sector’s ability to overcome these challenges and fully integrate AI as a driver of innovation and competitiveness.

This round table is also available in podcast format

ACA Luxembourg · IA : transformer le secteur – Atout stratégique ou défi ?

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Round table: The impact of climate change on the insurance industry

Faced with the growing challenges posed by climate change, Rachel Delhaise (Head of Sustainability – Convex), Thierry Langreney (President of the NGO Les Ateliers du Futur) and Valérie Scheepers (Head of the Non Life and Reinsurance department, member of the Executive Board – CAA (Commissariat aux assurances)) shared their perspectives. Discussions highlighted the urgent need to develop public-private partnerships to preserve the insurability of climate risks, while strengthening prevention through education and investment in appropriate infrastructures. Speakers also stressed the importance of long-term risk management tools, such as ORSA (Own Risk and Solvency Assessment), for anticipating the impact of natural disasters and adapting industry strategies. Finally, the round table called for a more inclusive insurance industry, thanks to mutualization mechanisms that would protect the most exposed populations, while maintaining a balanced and sustainable economic model.

Because a picture is worth a thousand words, take a look at the photos from the conference:

An ACademic Session worthy of a great film

The evening of this 12th edition took on a big-screen feel with its ACAdémique Session, placed under the evocative theme of cinema: “L’ACA fait son cinéma”. The evening left its mark thanks to a series of speeches highlighting the priorities and ambitions for the future of insurance and reinsurance in Luxembourg.

Marc Hengen, Director of the ACA, opened the 12th edition. He highlighted recent market developments, including :

• – Work on proposals to extend the range of Luxembourg life insurance products and eligible underlying assets, thereby strengthening the competitive position of life insurers in the international wealth management market.
• – The signing of a new collective bargaining agreement, which was successfully concluded after 7 months of sometimes heated negotiations.

In addition, Marc Hengen presented the outlook for 2024, announcing that this year would probably be the best in terms of premium collection. He also warmly welcomed new ACA members, including China Taiping Insurance, consolidating the association’s growing diversity and influence.

Christian Strasser: seizing the moment to build the future

Christian Strasser, President of the ACA, opened the session with a striking quote from the film Dead Poets Society: “Carpe Diem”. He urged the sector to act now to build its future and ensure its competitiveness. In his speech, he outlined six strategic priorities:

• 1. Competitiveness through the Freedom to Provide Services, crucial for a sector generating 90% of its premiums outside Luxembourg. The single market, guaranteed by the Treaties of Rome, is OUR market. This single market, with its fundamental freedoms, is of paramount importance to our industry.
• 2. Competitiveness through Regulation, essential to protect both our clients and industry players, as well as the sector as a whole. Compliance with legal requirements is both a necessity and a duty. However, anything that exceeds these legal requirements creates complications and additional costs, which are counterproductive in an internationally competitive environment, both for our sector and for Luxembourg.
• 3. Competitiveness through Products, by evolving the range of Luxembourg life insurance products to enable our players to compete effectively with their counterparts.
• 4. Competitiveness through Reforms, in this case, the reform of our pension system—a matter of individual concern but also critical to Luxembourg’s collective future. The ACA supports a strong and socially responsible first pillar as the foundation of the retirement system. This base must be complemented by a fiscally attractive second and third pillar, funded respectively by employers and individuals.
• 5. Competitiveness through Human Resources, bolstered by initiatives such as the creation of an actuarial chair at the University of Luxembourg.
• 6. Competitiveness through Innovation, as highlighted in the Draghi report, which concluded that Europe struggles to innovate. However, there is no shortage of good ideas! Creativity must be encouraged and supported. It is essential to foster technological innovation by adopting advanced digital tools to transform the industry.

In a speech combining pragmatism and ambition, Christian Strasser praised the sector’s resilience in the face of recent crises, while calling for collective mobilization to maintain the attractiveness and dynamism of Luxembourg as a business location.

Gilles Roth: “Innovation today, the best insurance for tomorrow”.

At the Aca Insurance Day, Finance Minister Gilles Roth highlighted Luxembourg’s innovation-led strategy, which includes tax reforms, regulatory updates and opening up to the world to keep the country’s financial center competitive.

Finance Minister Gilles Roth underlined the government’s commitment to promoting a competitive and sustainable financial ecosystem as part of the “Strengthening Luxembourg for the Future” coalition program. He said that a strong financial sector underpins Luxembourg’s economy and welfare system, adding that the government has delivered on its promises, notably by boosting purchasing power and tackling housing issues.

According to the Minister of Finance, the main initiatives are as follows:

• – lower corporate income tax: from 2025, corporate income tax will be reduced from 17% to 16%, boosting business competitiveness;
• – tax exemption for exchange-traded funds (ETFs): actively managed exchange-traded funds will be exempt from subscription tax, making it easier to open up new markets;
• – talent incentives: a tax exemption of 50% on gross annual salaries up to 400,000 euros for qualified professionals relocating to Luxembourg.

These measures, combined with an action plan for sustainable finance, aim to ensure long-term growth while strengthening the positive societal impact of the financial sector.

The Finance Minister reaffirmed his commitment to reducing bureaucracy and excessive regulation, which he described as obstacles to competitiveness. Highlighting European initiatives such as Solvency II and ESG frameworks, he assured participants that the government is actively engaged in developing regulations tailored to Luxembourg’s unique characteristics.

In his speech, Mr. Roth pledged to act swiftly on legislative reforms, in particular:

• – Solvency II revision: draft legislation reflecting simplifications by summer 2025;
• – the Insurance Recovery Directive: full implementation by the end of 2025;
• – the resolution authority: creation of a specialized body within the Commissariat aux Assurances (CAA).

“The whole directive and nothing but the directive” will be Luxembourg’s guiding principle, stressed Roth, advocating a pragmatic and competitive regulatory environment.

Valérie Tollet: innovation as a driver of transformation

Valérie Tollet, Deputy CEO of the ACA also highlighted the success of the ACA Innovation Award, a competition that embodies the ACA’s commitment to promoting innovation and transforming the sector. She highlighted the performance of LegalFly, winner 2024, which, thanks to its innovative legal compliance solution, demonstrates the essential role of startups in the evolution of the insurance ecosystem. This award symbolizes the ACA’s determination to accompany industry players towards a future focused on digital, agility and the creation of value for all our members.

ACA Insurance Day 2024 once again demonstrated the insurance and reinsurance industry’s ability to anticipate challenges and transform opportunities. Panels, speeches and celebrations of innovation made this edition a landmark moment for the sector. By building on its unique strengths and cultivating a collaborative approach, Luxembourg is positioning itself as a key insurance player in Europe, ready to meet the challenges of tomorrow.

Because a picture is worth a thousand words, take a look at the photos from the conference: