European Business Law, the fourth volume in our series, shows how the European authorities simultaneously abolish all restrictions on access to and exercise of economic activities and support the growth of domestic markets, through the harmonization the internal legislation or the enactment of genuinely unified regulations.

European Business Law

Insurance undertakings must be free to exercise their activities, create establishments and provide services throughout the territory of the EU. Insured persons must in return be protected and benefit from the guarantee of the proper execution by the insurance undertaking of its obligations. The sector was regulated very early on by the European authorities: in 1972 for motor vehicles; in 1973, fo …

Single insurance market

Insurance undertakings must be free to exercise their activities, create establishments and provide services throughout the territory of the EU. Insured persons must in return be protected and benefit from the guarantee of the proper execution by the insurance undertaking of its obligations. The sector was regulated very early on by the European authorities: in 1972 for motor vehicles; in 1973, for the taking-up and pursuit of direct insurance other than life assurance.

The process of European harmonization of national laws in the field of insurance took place in several stages. The first directives were concerned with promoting freedom of establishment . The European courts, in a desire to protect consumers, also acknowledged the legitimacy of the authorization of insurance undertakings by the host Member State, where the activity was pursued under the regime of the freedom to provide services , while at the same time holding disproportionate the requirement for authorization and for an establishment in the co-insurance sector . Drawing from the lessons of that case law, the 1988 and 1990 directives extended the principle of free movement of services to the insurance sector , by distinguishing professional risks qualified as “large risks” for which only a basic control by the home Member State was considered necessary and consumer risks qualified as “mass risks” capable of being subject to further control by the Member State where the service was to be provided. The integration of markets was consolidated by a third wave of directives in 1992, which established the fundamental principles of a single license and supervision by the home Member State, and instituted prudential rules such as the requirement for insurance undertakings to establish adequate technical provisions to cover their commitments to insured persons . A fourth generation of directives in 2002 improved the solvency margin requirements of insurance undertakings and began the re-working of the directives on life assurance . Lastly, in the interests of clarity and to improve consumer protection through new, more up-to-date and effective solvency requirements, the European Parliament and the Council adopted in November 2009 a recast Directive known as Solvency II , which repeals and replaces all the directives regulating direct insurance and reinsurance activities, and which for the time being constitutes the last stage of the process. In order to take account of developments in the economic environment and the new regulatory approach adopted by the European authorities in the other financial sectors, the new Directive makes risk management the focus of the system, by imposing: (i) quantitative requirements in terms of technical provisions and own funds; (ii) qualitative requirements in terms of governance and control; (iii) disclosure of information to the supervisory authorities and the public. It is, however, merely a framework Directive which lays down the principles governing the new system: the Commission must devise more detailed implementing measures after consulting market operators and the Member States.

EU regulation extends to fields as varied as motor insurance, life insurance, the solvency of insurance undertakings and their obligation to have a solvency margin, or insurance guarantee schemes which provide protection for consumers in the event insurers cannot meet their obligations, or reinsurance. Only the rules relating to motor insurance, life insurance and non-life insurance will be examined. All the directives fall within the framework of the Commission's Financial services Action Plan (FSAP) of 11 May 1999.

First Council Directive No 73/239 of 24 July 1973 on the coordination of laws, regulations and administrative provisions relating to the taking-up and pursuit of the business of direct insurance other than life assurance, OJEC L 228 of 16 August 1973, 3; Council Directive No 73/240 abolishing restrictions on freedom of establishment in the business of direct insurance other than life assurance of 24 July 1973, OJEC L 228 of 16.8.1973, 20; and Council Directive No 73/267 of 5 March 1979 on the coordinationof laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct life assurance, OJEC L 63 of 13 March 1979, 1.

Case 205/84 Commission v Germany [1986] ECR 3755, LawLex200900001657JBJ.

Case 252/83 Commission v Denmark [1986] ECR 3713, LawLex200900001767JBJ, Case 206/84 Commission v Ireland [1986] ECR 3817, LawLex200900001658JBJ and Case 220/83 United Kingdom v France [1986] ECR 3663, LawLex200900001676JBJ: the remedy is justified by the idea that co-insurance is only concerned with large undertakings or groups of undertakings which are in a position to assess and negotiate insurance policies proposed to them.

Second Council Directive No 88/357 of 22 June 1988 on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and laying down provisions to facilitate the effective exercise of freedom to provide services and amending Directive No 73/239/EEC, OJEC L 172 of 4 July 1988, 1; Council Directive No 90/619 of 8 November 1990 on the coordination of laws, regulations and administrative provisions relating to direct life assurance, laying down provisions to facilitate the effective exercise of freedom to provide services and amending Directive No 79/267/EEC, OJEC L 330 of 29 November 1990, 50.

Council Directive No 92/49 of 18 June 1992 on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and amending Directives Nos 73/239/EEC and 88/357/EEC, OJEC L 228 of 11 August 1992, 1; Council Directive No 92/96 of 10 November 1992 on the coordination of laws, regulations and administrative provisions relating to direct life assurance and amending Directives Nos 79/267/EEC and 90/619/EEC, partially repealed, OJEC L 360 of 9 December 1992, 1.

Directive No 2002/13 of 5 March 2002 amending Council Directive No 73/239/EEC as regards the solvency margin requirements for non-life insurance undertakings, OJEC L 77 of 20 March 2002, 17; Directive No 2002/83 of 5 November 2002 concerning life assurance, OJEC L 345 of 19 December 2002, 1.

Directive No 2009/138 of 25 November 2009 on the taking-up and pursuit of the business of insurance and reinsurance (Solvency II), OJEU L 335 of 17 December 2009, 1.

European Business Law

127. Single insurance market

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127. Single insurance market

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Les décisions de justice citées dans ce paragraphe :

Sous parties

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise