Oxera has produced a final report on Insurance Guarantee Schemes (IGS) in the EU for the European Commission DG Internal Market and Services. At present only 13 of the 27 European Member States have IGS in place. These offer a last-resort protection to policyholders in the event that insurers are unable to meet their commitments. An IGS can offer compensation to policyholders or can ensure the continuation of insurance contracts. Last-resort protection schemes exist in the EU for other areas of the financial services industry including deposit guarantee schemes and investor compensation (introduced across the EU through the Deposit Guarantee Directive and the Investor Compensation Scheme Directive).
The Oxera report aims to inform the policy debate on IGS in the EU. It provides a comparison of existing schemes and looks at the need for, and role of, IGS and the cost of establishing any schemes. The report considers the status quo and examines the options available at both national and EU-wide levels.