The CAA
Who are we?
The CAA is the competent supervisory authority for the insurance sector in the Grand Duchy of Luxembourg, which includes insurance undertakings, reinsurance undertakings, some specific pension funds, professionals of the insurance sector (PSAs), insurance and reinsurance intermediaries (agents and brokers) and ancillary insurance intermediaries.
CAA organisation chart & internal committees
What is our mission?
The main objective assigned to the CAA by the legislator is to guarantee the protection of policyholders and beneficiaries as well as members and beneficiaries of pension funds subject to its supervision. This objective includes the following tasks :
- the authorisation or registration of natural and legal persons wishing to engage in activities under the supervision of the CAA;
- the prudential supervision of these same natural and legal persons and the supervision of the market for insurance products;
- monitoring compliance with professional obligations relating to market conduct and product supervision, and with governance requirements;
- monitoring compliance with professional obligations relating to the fight against money laundering and the financing of terrorism and against the proliferation of weapons of mass destruction, as well as financial sanctions in the insurance sector
- attending international and European meetings with a view to drawing up common standards;
- the preparation of draft laws and prudential regulatory framework relating to the insurance sector and the coordination of the Government's efforts with a view to the orderly expansion of the activities of the insurance sector in the Grand Duchy of Luxembourg as well as the out-of-court complaint resolution;
- the out-of-court complaint resolution and the examination of complaints relating to supervised activities.
What is our legal status?
The CAA is a public institution placed under the authority of the Minister of Finance, endowed with legal personality different from that of the State and having financial autonomy.
What are our governing bodies?
The governing bodies of the CAA are the Board and the Executive Committee.
The Board is made up of five members appointed by the Government in Council. It is responsible for setting the financial framework within which the CAA's activities are carried out. In particular, it is responsible for determining the CAA's annual budget and annual accounts. It also expresses an opinion on the general policy pursued by the Executive Committee.
The Executive Committee is the CAA's highest executive authority. It takes its decisions as a college. It is made up of a Chairman and up to two members appointed by the Grand Duke on a proposal from the Government in Council from among the Commissariat's civil servants.
The Executive Committee is responsible for all matters not specifically reserved by law to the Minister or the Board. It is assisted by agents who have the status of civil servants or State employees.
A special role in the drafting and implementation of any new regulation in the insurance sector is assigned to the Prudential Regulatory Advisory Committee , which is made up of 8 members including the Minister or a representative who chairs this committee, representatives of the professions under the prudential supervision of the CAA and the CAA' Executive Committee as a college. The Government may ask the Advisory Committee to advise on any draft law or Grand Ducal regulation concerning the field of insurance sector superivison falling within the remit of the CAA. The Executive Committee must consult the Advisory Committee on any draft regulation of the CAA. The Advisory Committee may also be consulted on the introduction or application of the prudential regulatory framework as a whole or on specific aspects thereof.
What is the role of the Government?
The CAA's annual accounts and the reports approved by the Board are forwarded to the Government. The Government in Council is called upon to decide on the discharge to be given to the governing bodies of the CAA. The decision granting discharge to the CAA's governing bodies and the CAA's annual accounts are published in the Mémorial.
What are our financial resources?
The CAA is in charge of active staff costs and operating costs. They are ultimately supported by fees paid by individuals and legal entities under the supervision of the CAA.
How is the Office of the Commissioner supervised?
Supervision is carried out in accordance with generally accepted international and Community standards:
Before issuing an authorisation, the CAA examines the file, particularly with regard to the quality of the shareholders, the professional reputation and morality of the managers and directors, the adequacy of the capital invested and the long-term viability of the business plan.
During the course of its business, the CAA receives regular reports on the company's activities, assets and liabilities, and solvency margin. Some of these reports must be certified by auditors and/or actuaries.
The CAA carries out remote, on-site and documentary audits. It is entitled to obtain any document or information that is useful or necessary for the performance of its duties.
The legislator has also made available to the CAA a whole range of measures and sanctions designed to bring recalcitrant individuals or legal entities into compliance with legal or regulatory requirements. In the most serious cases, these measures can go as far as the withdrawal of authorisation.
After the cessation of business, the CAA remains competent to supervise the winding-up of an insurance business with a view to safeguarding the interests of policyholders.
Do we cooperate with other supervisory authorities?
The CAA cooperates with other supervisory authorities, both national and foreign, whenever prudential reasons require such collaboration.
At national level, the CAA cooperates with the Commission de Surveillance du Secteur Financier (CSSF) and the Cellule de Renseignement Financier (CRF).
The CAA is also a member of the Systemic Risk Board and works with the Haut-Comité de la Place financière and the Commission des Normes Comptables.
It is a member of the European Insurance and Occupational Pensions Authority (EIOPA) and the International Association of Insurance Supervisory Authorities (IAIS). It takes part in meetings of the Banking, Payments and Insurance Expert Group, Insurance Composition" and also participates in working groups of the Council and the Commission of the European Union as well as of the FATF and the OECD.
Members of the CAA's Executive Committee represent Luxembourg's interests on EIOPA's Board of Supervisors.
At international level, the CAA has signed the IAIS multilateral Memorandum of Understanding together with more than 150 supervisroy authorities around the world with a view to exchanging information, as well as a number of other bilateral cooperation agreements.