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Alexandre Draznieks (Cardif Lux Vie): Mastering Resilience and Innovation 

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After a year marked by fierce competition and unexpected challenges, Alexandre Draznieks, CEO of Cardif Lux Vie, provides insights into Cardif Lux Vie's resilience and strategic responses. 

How would you assess 2023, and how satisfied are you with the results? 

There were no surprises. It's been a difficult year, with a sharp rise in interest rates, which has led to competition from banking products such as term deposits. In June 2023, industry inflows were down 20%, but our company ended the year with a decline of just 8% after a solid recovery. This reflects both the robustness and resilience of our Group, and our ability to adapt our offerings. Current endeavors involve numerous scenarios, with the primary one forecasting a dip in rates, aligning with an inflation deceleration. Alternate scenarios consider the continuation of elevated rates.

How is your company adapting in this context? 

Luxembourg's life insurance sector boasts renowned benefits, yet complacency finds no place now. For instance, France recently legislated on green industry to facilitate life insurance access for investments in energy transition, stirring its market. French competitors are reforming, introducing more agility. Meanwhile, in Ireland, local firms actively seek market shares, highlighting Ireland's tax flexibility. Collaboration with the ACA and the CAA aims at evolving Luxembourg regulations to unveil new opportunities. Another area of

work involves the rapid adoption of technological innovations to cope with regulatory pressure, including AML and KYC procedures, as well as reporting and file analysis. Cardif Lux Vie's ongoing evolution embraces automation, standardization, robotization, and notably, artificial intelligence, promising enhanced partner services and escalating satisfaction, our ultimate criterion. Our collaboration extends to 315 asset managers and 130 custodians, with a significant emphasis on APIs for seamless integration and essential data access for processes.

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"As the second leading entity in the market, we are positioned as a key player in the freedom to provide services."

What are the distinctive features of your positioning in the Luxembourg life insurance market? 

As the second leading entity in the market, we are positioned as a key player in the freedom to provide services. We offer one of the broadest service coverages with 6 countries in the European Community and 10 beyond. Our offer stands out as it is comprised of a very broad range of products, with flexible and versatile internal funds, external funds, and a general capital-guaranteed fund. Cardif Lux Vie’s DNA consists in offering a very open, non-captive model, while leveraging the robustness of a large group. 

What do you think Luxembourg life insurance will look like in the future? 

The insurance industry faces two major challenges requiring collective response. Firstly, protectionism is resurging in Europe, threatening Luxembourg's expertise in insurance and wealth management, exported across Europe via Free Provision of Services (FPS). ACA and Luxembourg's government vigorously defend this asset. Secondly, embracing new technologies is crucial for easing regulatory burden. Strengthened regulations like AML demand advanced reporting methods. Today's challenge is leveraging AI for transformative business practices, ensuring consumer protection and reliable exchanges.

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