Insurance Contract Law

Author:Mr Darren Maher and Sharon Daly

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...

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