1. Press release
3 June 2013
Restrictions to co(re)insurance could be damaging to
businesses
The Federation of European Risk Management Associations
(FERMA)warned the European Commission that any
restriction to the operation of the subscription insurance
market could work to the disadvantage of business by
reducing market capacity or making access to that capacity
more difficult.
FERMA has expressed these concerns in position paper published
today (3 June) commenting on the findings of a 2013 study by
Ernst & Young on co(re)insurance practices. The Commission had
asked E&Y to undertake the study ahead of the next review of
the Insurance Block Exemption Regulation. In its current form,
the Block Exemption will expire on 31 March 2017.
FERMA states that the exemption to the application of EU
competition rules of co(re) provides more benefits for the
market than issues. There is competition in the process, it
argues, in the selection of the leader.
“The subscription market plays a critical role in covering
industrial risks. Therefore FERMA is concerned that any
restriction to the operation of the subscription market would
reduce market capacity (or make access to market capacity more
difficult) to the disadvantage of insurance buyers. These concerns
are also shared by the insurance market itself.
“Co(re)insurance practices are part of the basic functioning of the
insurance market in Europe (both the London and the
Continental European markets). They are the only way to find the
huge financial capacities needed in the business insurance sector

2. and no individual market players could meet these needs on their
own. As it has been working properly so far and proved its
benefits, it should not be hindered. Rather, it should be
permitted and allowed to continue.”
FERMA makes the following comments:
The first phase of subscription process (i.e. the
selection of the lead insurer) is a highly competitive
process.
Once the lead insurer has been selected, this practice
is time-efficient.
When it comes to handling claims and resolving
disputes, this practice brings legal certainty for the
parties.
Because of this recognised efficiency, the
subscription market attracts a great diversity of
insurance companies, which is in the corporate
client’s best interest.
Coinsurance business in Europe is competitive and
attractive because of the recognised EU expertise.
These capabilities should be preserved to maintain
EU competitiveness with other coinsurance markets.
For more information, contact
Lee Coppack
FERMA media coordinator
lee@coppack.co.uk or +44 (0)20 8318 0330 or
+44 (0)7843 089904 (on 3 June)
Or
After 3 June
Florence Bindelle
FERMA executive manager
florence.bindelle@ferma.eu or +32 (2) 761 94 31
About FERMA

3. The Federation of European Risk Management
Associations (FERMA) brings together 22 national risk
management associations in 20 European countries.
FERMA has 4,500 individual members representing a wide
range of business sectors from major industrial and
commercial companies to financial institutions and local
government bodies. These members play a crucial role for
their organisations with respect to the management and
treatment of complex risks and insurance issues.
Member associations are from the following countries:
Belgium (BELRIM), Czech Republic (ASPAR CZ), Denmark
(DARIM), Finland (FinnRiMa), France (AMRAE), Germany
(DVS/BfV), Italy (ANRA), Luxembourg (PRiM), Malta
(MARM), Netherlands (NARIM), Norway (NORIMA),
Poland (POLRISK), Portugal (APOGERIS), Russia (RusRisk),
Slovenia (Sl.RISK), Spain (AGERS and IGREA), Sweden
(SWERMA), Switzerland (SIRM), Turkey (ERMA) and United
Kingdom (Airmic).