Inactive insurance policies placed in trust jump 22% as 2022 rules take hold

The number of inactive insurance policies in Luxembourg placed in trust rose by 22% last year, as rules adapted in 2022 gain stream.

There were 434 insurance policies in ‘consignment’ at the end of 2025, up from 355, Luxembourg’s insurance regulator, the Commissariat Aux Assurances (CAA), said last week.

The increase was partly driven by the end of a transition period for the new regime, which began in 2023 and finished in 2025.

The total number of dormant insurance contracts decreased by more than half (55%) to 3,634 last year, according to the CAA figures.

The drop in the number of dormant contracts was primarily due to “improved data quality,” the CAA stated. “A significant number of contracts” had previously been miscategorised by insurance companies as dormant, the regulator said.

The total value of dormant or inactive policies declined by just 9%, representing €92.6 million at the end of 2025. “This decrease is explained by companies’ increased efforts to find the beneficiaries of the contracts in question,” the CAA stated. “It should be noted that these efforts have been primarily successful for contracts with high outstanding balances.”

The regulator said it would ask insurers “about the concrete measures implemented, country by country, to identify and locate the policyholders and/or beneficiaries concerned.”

The 2022 law took effect in 2023 and specified the steps that insurers need to take in handling dormant contracts and unclaimed life insurance policies.

Policies are considered unclaimed after two years without any client activity. Insurers need to place the funds in trust with Luxembourg’s Consignment Office (Caisse de consignation) after six years of inactivity.