1. Background
Circular 23/1 aims to define the annual report of unclaimed insurance contracts that must be submitted to the CAA in a format compatible with the information communication requirements imposed under the law of 30 March 2022 on inactive bank accounts, inactive safe-deposit boxes and unclaimed insurance contracts ("2022 Law").
Under Article 27, paragraph 2 of the 2022 Law, insurance undertakings must, by electronic means, inform the CAA and the Direct Tax Administration ("DTA") of their total number of unclaimed insurance contracts and the total balance of those contracts as of 31 December of each year.
The information must be provided by 28 February of the following year.
It is up to the CAA to determine the format in which the relevant information must be provided and presented.
2. Scope of application
Circular 23/1 applies to:
- Luxembourg life insurance undertakings; and
- branches of life insurance companies established in Luxembourg.
3. Key considerations
Circular 23/1 sets out that the reporting file to be submitted to the CAA must:
- be presented in EXCEL format;
- contain a company identification tab;
- include three additional mandatory tabs containing:
- a breakdown of gross technical provisions for unclaimed contracts at year end, by country of commitment and type of contract;
- a breakdown of the number of unclaimed contracts at year end, by country of commitment and type of contract; and
- the number of deposits with the Caisse de consignation and the related gross technical provisions made during the year, as well as the total number of deposits with the Caisse de consignation and the related gross technical provisions at year end.
Circular 23/1 further emphasises that, once the deposit of an unclaimed contract has been accepted by the Caisse de consignation, the contract is considered an escheated contract and no longer an unclaimed contract.
Finally, the CAA highlights that, unless advised otherwise by the undertaking concerned, the CAA itself will transmit the aggregated data per undertaking to the DTA: undertakings are not required to directly submit information to the DTA.
4. Timeline
Circular 23/1 has been applicable since 18 January 2023.
The reporting file must be submitted to the CAA via the secure transmission channel by 15 February of each year.
If you require any assistance or advice regarding the rules and requirements governing unclaimed life insurance contracts, please, contact our Insurance & Reinsurance Law experts.
The Forensic Investigations, Corporate Intelligence & Litigation Support practice of Arendt Regulatory & Consulting also has a dedicated service providing assistance with locating clients, heirs and beneficiaries.
To read Circular 23/1(French only), click here_
To read our newsflash on inactivity in accounts, safe-deposit boxes and insurance contracts, click here_
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.