Third-party liability insurance is compulsory for all automobile owners, as is insurance for nuclear operators, hunters, hotel operators, boats, and aircraft. Domestic insurance companies issue both life and nonlife policies. The Third European Life Directive has permitted life companies to operate in any European Union (EU) country while still being controlled by domestic regulations. As of 1996, 23 subsidiaries of leading European companies had been set up in Luxembourg, attracted by the availability of skilled staff and the proximity to major European markets. Direct premiums written in 2001 grew to US $5.62 billion, with US $775 of the total comprised of nonlife premiums and US $4.845 comprised of life insurance premiums.
The Commissariat aux Assurances regulates insurance companies in Luxembourg.