With more than 93% of premiums collected outside the Grand Duchy, Luxembourg life insurance has undeniably contributed to the dynamism of the European passport with regard to both freedom of services and freedom of establishment.

Luxembourg life insurance is mainly a passported activity and is thus marked by cross-border issues shaped by local developments that require constant monitoring by practitioners, particularly when it comes to one of the sector's
leading products: life insurance linked to investment funds.

Life insurance linked to investment funds, more commonly referred to as 'unit-linked life insurance', gives rise to a number of questions when used in the international context due to its composite nature. One such question is the division of powers between the various legal orders that make up the sphere of pan-European life insurance.

The difficult but nonetheless appropriate distinction between prudential and contractual matters can provide clarification in this regard.