Brussels, 03/03/2014 (Agence Europe) - Commissioned by the European Commission to study fragmentation of the European insurance market, particularly life insurance and car insurance, twenty experts from twelve member states have published their findings.
The main findings of the report on European Insurance Contract Law are: - for many life, motor or liability insurance products sold to consumers, insurance companies have to adapt their contracts to the national rules where the policyholder is based. This means they have to develop new contracts to comply, for instance, with rules on pre-contractual information; - contract law differences impede the supply of insurance products across borders. They increase costs for the cross-border provision of insurance, create legal uncertainty and make it very difficult for consumers and businesses to take out insurance in other member states; - contract law obstacles are found primarily in the sector of life insurance, as well as areas such as liability and motor insurance. The report finds that problems are less likely to occur in insurance for large risks markets if linked to a trade or certain insurances for bigger companies - such as in the area of transport insurance.
Viviane Reding, the European Commissioner for Justice, Fundamental Rights and Citizenship, commented: “The reality is: only a few customers can buy insurance products in other countries, with just 0.6% of all motor insurance premiums and 2.8% of property insurance premiums offered across EU borders.” (MB)