Representing buyers of insurance for large risks in the majority of EU member states, FERMA said that the Final Report of the Expert Group on European Insurance Contract Law sheds light on the potential impact of national contract law differences over the use of insurance of products in the European Union. It welcomed the conclusion of the Expert Group that insurance products for large risks are already widely distributed on a cross-border basis. This Expert Group was set in January 2013 by the European Commission.

1. FERMA calls for caution on EU insurance contract law changes
27 March 2014
The Federation of European Risk Management Associations (FERMA) has called
for a cautious approach to any changes to the regulatory treatment of differences
between EU national insurance contract laws to avoid jeopardising the market
for large risks which is working well.
FERMA has made these comments today to the European Commission in its
response to the final report by the Expert Group which has been considering
whether differences in contract law between EU countries are an obstacle to the
cross-border provision of insurance.
Representing buyers of insurance for large risks in the majority of EU member
states, FERMA said that this comprehensive report sheds light on the potential
impact of national contract law differences over the use of insurance of products
in the European Union. It welcomed the conclusion of the Expert Group that
insurance products for large risks are already widely distributed on a cross-
border basis.
FERMA has told the Commission: “Risk managers, as corporate insurance
buyers, share the view that the provision of large risks insurance products on a
cross-border basis is already occurring without any major obstacles arising from
local insurance contract law provisions. In our view, the current legal situation is
more than satisfactory for cross-border operating organisations when it comes
to negotiating contractual terms for specific coverage and this gives EU
companies a much needed legal certainty and competitive advantage.”
FERMA President Julia Graham commented: “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.”
Attempts to make national insurance contract laws converge would be,
according to FERMA, a long and costly enterprise with unclear benefits and
potential unintended consequences for the large risks insurance market.

2. The Commission will now follow up on the report with stakeholders
(consumers, businesses and the insurance sector), which could lead to a formal
consultation (Green Paper).
Once settled in, the newly elected European Parliament and its legal affairs
committee (JURI) could also decide to produce an initiative report to express its
position regarding the matter.
Notes for journalists:
The Final Report of the Commission Expert Group on European Insurance
Contract Law can be consulted here: http://bit.ly/1dhNc1L
Media contacts
Lee Coppack, FERMA media coordinator
lee@coppack.co.uk
+44 (0) 208 318 0330 and +44 (0) 7843 089904
Or
Florence Bindelle, executive manager, FERMA
florence.bindelle@ferma.eu or +32 (2) 761 94 31
The Federation of European Risk Management Associations (FERMA) brings
together 22 national risk management associations in 20 European countries.
FERMA has more than 4,300 individual members representing a wide range of
business sectors from major industrial and commercial companies to financial
institutions and local government bodies. These members play a crucial role for
their organisations with respect to the management and treatment of complex
risks and insurance issues.
Member associations are from the following countries: Belgium (BELRIM), Czech
Republic (ASPAR CZ), Denmark (DARIM), Finland (FinnRiMa), France (AMRAE),
Germany (DVS/BfV), Italy (ANRA), Luxembourg (ALRiM), Malta (MARM),
Netherlands (NARIM), Norway (NORIMA), Poland (POLRISK), Portugal
(APOGERIS), Russia (RusRisk), Slovenia (Sl.RISK), Spain (AGERS and IGREA),
Sweden (SWERMA), Switzerland (SIRM), Turkey (ERMA) and United Kingdom
(Airmic).