International Affairs - FAQs
Are insurance companies permitted to offer their products also in other EU countries?
Yes. Every insurance company, licensed to operate in an EU member state, which complies with both national and EU law, can offer its services in 30 countries (27 EU member states, Iceland, Liechtenstein, and Norway).
In practice, though, cross-border activities by insurance companies are very limited. This is due, on the one hand, to little demand by consumers who prefer to buy locally, as experience shows. On the other hand, it is a big challenge – also for insurance companies – to assess the risks encountered in a foreign market. Insurance products are therefore offered in those places where a proper assessment can be made.
It also needs to be borne in mind that foreign insurers need not cover the same risks and/or offer the same products. The available services vary greatly, you should therefore obtain detailed information before signing an insurance contract.
Which insurance products are mainly bought at home in spite of the single market?The overwhelming majority of policy holders trusts the local suppliers and/or uses the local distribution channels when buying insurance products. This is due to two factors, i.e. the language barriers and the service provided. After all, customers wish to be able to contact their insurance and/or their insurance adviser quickly and without problems. Customers are concerned that communication channels are less expeditious when buying foreign products. Insurers have reacted to this attitude and set up branch offices or representative offices in the other EU member states.
Top