Stricter EU rules could drive demand for EPLI

Stricter EU Commission rules along the lines of consumer protection could lead to a greater demand for employment practices liability insurance (EPLI) in some parts of Europe.

This was one finding to emerge from the roundtable discussion, to which StrategicRISK invited German experts.

The panel was asked if German anti-discrimination law, or Allgemeines Gleichbehandlungsgesetz, was a real theme for insurance or a “marketing bubble” from insurers.

Günter Schlicht, manging director of Deukona Versicherungs-umd Vermittlungs-GmbH, Deutsche Bank Group, corporate insurance/risk management, said EPLI was more or less a must for US companies, adding that the problem will come to Germany but “the question is only to what extent.”

“Every company will have to consider what precautions it takes,” he added.

Ralf Oelssner, vice president, corporate insurance, Lufthansa German Airlines, said: “I think that for quite a long time EPLI will not mean as much here as it does in the USA or Britain.”

Hans-Jürgen Allerdissen, managing director, Deutsche Verkehrs Assekuranz-Vermittlungs-GmbH, insurance brokers, Deutsche Bahn Group, added: “For us it is so, that all leading employees have been prepared through extensive training, so that we do not see this as such a huge theme.”

“Europe offers many possibilities, if one is ready to move one's policies and one's place of jurisdiction somewhere else.

Edwin Meyer, general manager, risk and insurance management, ArcelorMittal

The panelist went on to consider the advantages of other jurisdictions when it comes to employer’s liability claims. Edwin Meyer, general manager, risk and insurance management, ArcelorMittal, said: “Europe offers many possibilities, if one is ready to move one’s policies and one’s place of jurisdiction somewhere else.”

Arguing for the ability to regulate and process liability claims, Meyer added: “I would suggest choosing the country where there is the most know how, and at the moment that is certainly Britain.”

Allerdissen finished: “Where it is necessary, I think one should consider taking out EPLI cover. However, I think it is even more essential, also in Germany, to firmly put the theme into the minds of managers.”

The roundtable was hosted in association with Allianz.

A FULL TRANSCRIPT OF THE DISCUSSION WILL BE AVAILABLE AS A SUPPLEMENT IN SEPTEMBER’S ISSUE OF STRATEGICRISK

A SPECIAL REPORT ON EUROPEAN EMPLOYMENT PRACTICES LIABILITY WILL FEATURE IN OCTOBER’S ISSUE OF STRATEGICRISK