The EU policy on insurance and reinsurance law and the prospect of harmonisation: fact or fiction?


In an effort to promote further the internal market, the European Commission has proposed the Common Frame of Reference (CFR) and the creation of an optional model for an optional European Civil Code. Within the CFR, insurance law is prominent due to the importance of the insurance sector for the EU economy, the character of insurance contracts as a special bread of cross-border trade, and the need to complete the internal insurance market. To this effect, the Reinsurance Directive 2005/68/EC and the Solvency II Directive have been shaped in an effort also to fill the gap for homogenous insurance and reinsurance regulation.
In examining the current status of EU insurance and reinsurance law, the EU policy and reasoning behind it, and the latest developments regarding the proposed CFR and optional instrument for an optional European Civil Code, we assess the future of European insurance law, the best way to achieve harmonisation in the insurance sector and the anticipated impact of harmonisation on the internal market.