After signing the EEA Agreement in 1995, Liechtenstein initiated the Liechtenstein Insurance Center Project, establishing insurance supervision legislation in conformity with European standards. The Law on the Supervision of Insurance Undertakings and the Ordinance on the Insurance Supervision Act entered into force on 1 January 1996 and 24 January 1997, respectively.

Insurance undertakings domiciled in Liechtenstein enjoy free access to the European market, which encompasses over 450 million inhabitants. Their business activities are subject to insurance supervision that is completely in conformity with European and internationally recognized standards.

Before Liechtenstein joined the EEA, only agencies of Swiss insurance undertakings were operating in Liechtenstein. In order to create the same conditions for them as for the EEA insurance undertakings, Liechtenstein and Switzerland concluded a Direct Insurance Agreement on the basis of reciprocity. Insurance undertakings domiciled in Liechtenstein and Switzerland are granted freedom of establishment and services with respect to direct insurance activities on the territory of the other State. This has made it possible to operate directly from Liechtenstein not only in the EEA, but also in Switzerland. This agreement has been in force since 1 January 1997.

Thanks to these three components (EEA membership, insurance agreement with Switzerland, and the newly created insurance supervision legislation), Liechtenstein has excellent perspectives to continue to establish itself as an insurance location as well.

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