Doing insurance business in Liechtenstein

The Principality of Liechtenstein is a small country in the heart of Europe, located between Switzerland and Austria. Despite the small size, Liechtenstein is very competitive in the financial sector, including insurance companies and products. Due to its close economic ties with the surrounding countries – Liechtenstein is part of a customs and monetary union with Switzerland for 100 years, has concluded an agreement with Switzerland on direct insurance and insurance distribution and is a member of the European Economic Area (EEA) since 1995 – Liechtenstein offers an outstanding location for insurance companies.

Unique insurance sector

Liechtenstein’s insurance companies have access to the European and to the Swiss market. Such a unique position is based on balanced laws and the multilateral agreement of the EEA and the bilateral agreement with Switzerland. Insurance companies can therefore sell their products to customers in 30 EEA member states and to Swiss customers due to the direct insurance agreement with Switzerland.

Liechtenstein law for operation of insurance companies is governed by the Insurance Contracts Act (VersVG, 2001) and the Act on Supervision of Insurance Companies (VersAG, 2015), both in accordance with the European Solvency II Directive (2009/138) and the related regulations. Liechtenstein insurance brokers are covered by the Insurance Distribution Act (VersVertG, 2017) in line with the European Insurance Distribution Directive (2016/97). This law regulates the requirements for commencement and operation of the activity of insurance and reinsurance distribution.

At the global level, the insurance industry is fiercely competitive. However, the Liechtenstein insurance sector has strategically oriented itself to align with the varied regulations of its target markets worldwide. The insurer’s adeptness in navigating diverse legislation stands as a cornerstone of Liechtenstein’s prowess as an insurance hub.

The insurance industry can further pursue its growth on the basis of the country’s solid financial situation, excellent political stability and stable environment. The Swiss franc is a strong and stable currency, Liechtenstein owes an AAA rating from Moody’s and Standard & Poor’s, and the country follows a solid financial policy and has great capital strength in the public sector. The insurance industry also benefits from a business-friendly and efficient state, short official channels and open communication.

Liechtenstein’s modern tax system and liberal commercial and company laws promote innovation in product development, enable flexible insurance solutions and guarantee the client’s protection and security in all parts of the insurance industry.

Successful companies and innovative products

A total of 33 insurance companies are licensed in Liechtenstein. Liechtenstein’s insurance companies have a total balance sheet amount of CHF26.6bn, gross premiums up to CHF5.59bn and invested capital worth CHF23.2bn (figures from 2022).

Insurance companies either provide non-life insurance or life-insurance services due to separation of sectors. Life insurers in Liechtenstein offer a wide range of insurance solutions that are adapted to the legislation of the respective target markets. Non-life insurers have specialised, in particular, in the coverage of major events and special risks. All companies operating in the reinsurance sector are captives (self-insurance companies).

The ideal conditions in Liechtenstein as a business location help to develop innovative products and new marketing strategies. Captives, as companies’ own insurance companies, also benefit from this locational advantage. From Liechtenstein, captives are able to insure the subsidiaries and branches of their parent companies, both through Europe (EEA) and in Switzerland. Flexible and innovative insurance solutions based on European regulations are tailored to the legal and tax legislation of the target markets and contribute significantly to the success and growth of Liechtenstein as an insurance centre. Target markets are, in particular, Germany, Austria, Switzerland, the UK, Italy, and Sweden.

Recent trends

  1. Demand on asset insurance: recently, the geopolitical situation in Europe changed. Due to conflict between Russia and Ukraine, inflation increased in the whole of Europe. The war also poses new challenges for the energy sector. Liechtenstein’s insurance companies are preparing new products under these circumstances. New plans with asset insurance were introduced with enhanced asset security product to protect investors’ assets. The combination of investment strategy, liquidity, pension planning, individual estate planning, and asset protection services into one solution is an innovative approach to these challenging times.
  2. Digital insurance policies: Liechtenstein is well-known for its digital economy and blockchain industry. Digital services are an efficient way to meet customers’ needs in the field of insurance policies. Easy communication platforms in combination with competitive pricing models are a newly established branch of the Liechtenstein insurance sector with activities in Germany, Switzerland, and the whole of Europe.
  3. Life insurance products: due to its close location to the Swiss financial market and being at the heart of Europe, Liechtenstein’s insurance companies are offering innovative and professional life-insurance products. These life-insurance policies are covered by professional asset management services of highly professional managers with a strong expertise in investments and supervision of current developments and future potentials.


In summary, the Liechtenstein insurance sector stands as a competitive force, leveraging its strategic geographical position at the heart of Europe, reinforced by its close integration with the EEA and Switzerland. Supported by a robust economic foundation and a thriving financial market within a business-friendly environment, Liechtenstein offers an ideal platform for international clients.

Brief biography

Philip Raich completed his Master of Laws degree at the University of Vienna in 2001. Following his studies, he worked as a research assistant at the European Centre of E-Commerce and Internet Law in Vienna. He embarked on his career at a business law firm in 2004. In 2008, he passed the Austrian Bar Examination. Between 2007 and 2014, Philip Raich worked as a lawyer at one of the leading law firms in Austria and CEE. He specialised in corporate law, M&A and private clients. In 2014, he moved to Liechtenstein and worked at a business law firm in Vaduz until 2017. From 2017 to 2020, he worked as a senior legal, compliance and risk consultant at a big trustee and financial services provider in Vaduz. Philip Raich is a member of the Vienna Bar and the Liechtenstein Bar. He is fluent in German (mother tongue) and English.