Insurance Guarantee Schemes (White Paper)

With its White Paper, the Commission instigates a discussion on how to provide policyholders with comprehensive protection that is harmonised at EU level for the event of insurance companies becoming insolvent. Similar to the bank deposit guarantee scheme, the Commission’s aim is to establish a European guarantee scheme for insurances covering both life and non-life insurances. 


A mandatory guarantee scheme for all insurance products is not necessary as a loss of confidence in the insurance market does not entail any systemic risks. The introduction of a mandatory guarantee scheme should be left to Member States to decide. Mutual borrowing between national guarantee schemes threatens to destabilize solid insurance companies.