Viability of services passport questioned

Insurance Europe has questioned the ability of a services passport to ensure a service provider is able to satisfy cross-border insurance obligations.

It was responding to a European Commission consultation on a proposed EU services passport for the single market, in which it emphasised its support for the facilitation of insurance for cross-border services but remained sceptical of the viability of a passport.

Insurance Europe said different insurance needs between member states often stemmed from national liability legislation, national requirements for professionals and local costs that influenced damage claim amounts. It said it was unlikely the passport would enable a service provider to bypass these differences.

Based on the European Commission’s consultation document, Insurance Europe warned it remained unclear how an EU services passport would facilitate the provision of insurance for cross-border services providers, and what role insurers would play with respect to the development and delivery of this.

Insurance Europe recommended that the “provision of, and better access to, information regarding professional requirements in other member states is the best way to support service providers wishing to offer their services cross-border”.