Adoption of bill n°8184

The Chamber of Deputies adopted on March 19, 2024, Bill No. 8184, whose main purpose is the transposition of Directive (EU) 2021/2118 concerning motor vehicle liability insurance. This project also includes provisions aimed at facilitating the use of subcontracting for insurance companies.

For many years, professional secrecy has posed legal, technical, and practical problems for most insurers active in the Luxembourg market regarding the use of subcontracting. The restructuring of the text in 2018, unfortunately, did not produce the expected effects for the sector. The use of subcontracting, via cloud service providers, therefore remains both complex and limited for market players with a stock of life insurance contracts. According to the ACA, 86% of its members are affected by the negative effects of professional secrecy in terms of subcontracting.

The reform of the rules on professional secrecy and subcontracting is one of the ACA’s priorities, and the need for reform was highlighted in the context of the claims made by the sector at the time of the legislative elections in October 2023. Throughout 2023, the ACA spared no effort to evolve it. The various actions taken have borne fruit since the Ministry of Finance submitted a bill in 2023 that provides for two changes that have an impact on the rules of professional secrecy:

• on the one hand, a new possibility of “cloud outsourcing” to critical third-party ICT service providers that will be supervised under DORA, without professional secrecy being an obstacle;
• on the other hand, a possibility for life insurers to treat, following a specific procedure, the case of clients who would not respond to a subcontracting request made by insurers.

Today, the ACA welcomes the adoption of Bill No. 8184.