Insurance Block Exemption Regulation: Statistics and Co-(re)Insurance Exemptions Challenged
A European Commission report threatens the continued existence of the Insurance Block Exemption Regulation. The regulation protects essential industry practices, namely the sharing of statistics and certain joint insurance arrangements (ie, line slips, pools, consortia and joint-binding authorities). The report invites the sector to explain why the regulation should not lapse, without renewal, when it ends in 2017. The report appears to be based on partial data and misunderstands key features of the industry. It will be important for stakeholders to respond robustly to the report's conclusions. The loss of this protection – especially on flawed grounds – creates potentially damaging legal uncertainty.
*This article was first published on Lexology.