Established by the third European Life Directive, the purpose of the Freedom to Provide Services (FPS) regime is to create a single market in insurance.

The Directive grants all approved insurance companies. established in a member state of the European Union (EU), the benefit of a European passport allowing it to exercise its activity in all the other EU countries without having to be physically established there.

Thus a client resident in one EU country can subscribe a life insurance policy with an insurer established in another EU country. Please note that certain provisions, most notably of a legal and tax nature, must be complied with by both the subscriber and the insurer.

Consequently, the Third Life Directive has created a favourable environment for the constitution of a real European market in life insurance by giving consumers access to a much greater range of products and services to meet their particular needs.

Luxembourg has been chosen by a large number of insurers as the bridgehead for distributing their products under the FPS regime throughout the European Union, which is testimony to sound competence in the field and a highly favourable environment.

Freedom to Provide Services now represents the largest part of the Luxembourg insurance market, accounting for more than 80% of insurance premiums collected.