Insuring environmental damage in the European Union
The new Environmental Liability Directive of the European Union presents a major challenge for the insurance industry: It creates unprecedented loss complexes based on a new public law liability regime for which claims experience is not yet available. With its publication “Insuring environmental damage in the European Union” Swiss Re provides an overview of the revised environmental liability regime in the EU, and examines the problems and opportunities this creates from an insurance viewpoint.
The Directive marks a new phase in European legislation for environmental impairment liability, as its prime objective is to implement the “polluter pays” principle. At the same time, it sets new standards for the remediation of environmental damage. While the complexity of the subject matter means that some countries are behind schedule, many member states of the European Union have already transposed the new EC directive into national law in order to meet the target date on 30 April 2007.
The insurance industry needs to develop risk transfer solutions that will cover the cost of remedying environmental damage based on public-law liability. It is important for the insurance industry to assess the exposure to the new claims complexes. Even if various approaches to the problem are conceivable, in Swiss Re’s view the insurance industry should look at existing, traditional insurance products as a foundation upon which to build new coverages.
Download this publication in:
Insuring environmental damage in the European Union
Access the webinar audio file
Order a printed version of this publication.
