This paper responds to the consideration by the European Commission (EC) of a possible EU-wide compulsory insurance system relating to the Environmental Liability Directive (ELD). Insurance Europe has undertaken a survey across EU insurance markets to identify the availability of environmental liability insurance.
The survey shows that many different insurance solutions are available in EU member states to cope with market demand. It also clearly demonstrates that a voluntary free market is working in this challenging area, with different products and approaches available, and that a “one size fits all approach” at EU level would not be feasible. On the contrary, such an approach could impede the current encouraging development of insurance products in the member states.