ARTICLE
18 March 2014

Insurance Contract Law

M
Matheson

Contributor

Established in 1825 in Dublin, Ireland and with offices in Cork, London, New York, Palo Alto and San Francisco, more than 700 people work across Matheson’s six offices, including 96 partners and tax principals and over 470 legal and tax professionals. Matheson services the legal needs of internationally focused companies and financial institutions doing business in and from Ireland. Our clients include over half of the world’s 50 largest banks, 6 of the world’s 10 largest asset managers, 7 of the top 10 global technology brands and we have advised the majority of the Fortune 100.
An Expert Group has issued a report identifying barriers to cross-border trade in insurance law across EU Member States.
Ireland Insurance

An Expert Group, set up by the European Commission, has issued a report identifying barriers to cross-border trade in insurance law across EU Member States. The Expert Group, composed of 20 members from 12 Member States and with different occupational experiences, was tasked with identifying if and to what extent contract law differences hinder cross-border provision and use of insurance products.

The report finds that differences in contract laws impede the cross-border supply of insurance products by increasing costs, creating legal uncertainty and making it hard for consumers and businesses to take out insurance in other EU Member States. For example, a person moving to another EU Member State may have to take out a new car insurance policy.

Some of the key findings of the report include the following:

  • In respect of life, motor or liability insurance products sold to consumers, many insurance companies have to adapt their contracts to the national rules where the policyholder is based. As a result, companies have to develop new contracts to comply, for example, with rules on pre-contractual information
  • Contract law differences impede the supply of insurance products across borders by increasing costs for the cross-border provision of insurance, creating legal uncertainty and difficulties for consumers and businesses in taking out insurance in other Member States
  • Contract law obstacles are mainly found in the life insurance sector, in addition to areas such as liability and motor insurance

Based on the findings of the report, the European Commission will now consult with consumers, businesses and the insurance sector on finding possible solutions to the issues identified.

Please click here to view the report in full.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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