Insurance Europe has responded to a European Commission call for evidence on the operation of collective redress arrangements in the European Union.

Insurance Europe said that too little time has passed since the Commission’s 2013 recommendations to properly assess a possible need for further legislative action. For example, in some member states — such as Belgium, Denmark and France — instruments for collective action have recently been enacted and in others — such as the Netherlands — they are currently being further developed. Therefore, more time is necessary to see how these mechanisms function in the different legal traditions and systems.

Insurance Europe added that safeguards, such as those introduced in the Commission’s 2013 recommendations, were a step in the right direction if consistently and fully implemented. While the issue of third party funding has already been addressed in the recommendations, Insurance Europe said more safeguards should be introduced in instances where the funder has no relation to the claim, claimant or defendant. Insurance Europe also said that it advocates the use of alternative dispute resolution mechanisms, which tend to be more speedy, efficient and effective routes to conflict resolution.