FERMA has asked that the EU not to intervene in the regulation of national insurance contracts, arguing that such an approach will jeopardise the market’s ability to write large cross-border risks.
The Federation of European Risk Management Association (FERMA) has said that it wants the EU to take a “cautious approach” on the issue, rather than aim to change its regulatory approach.
FERMA expressed its views following the release of a final report from the EU that examined whether cross-border differences were an impediment to the European insurance market.
Commenting on the report’s findings, FERMA president, Julia Graham says: “the industry needs tailor-made insurance products to support and secure its development. Insurance coverage must fit the diversity of operators, their multiple locations and their different exposure to risks.”
“Differences in insurance contract laws that could be obstacles to such tailor-made insurance products are overcome thanks to the large degree of contractual freedom and free choice of law that currently exist."
FERMA said that attempts to make national insurance contract laws converge, would be a long and costly enterprise with unclear benefits and potential unintended consequences for large risk insurance markets.
The issues around national contract continue to be debated by the EU.