EIOPA published report on the cross-border cooperation mechanisms between Insurance Guarantee Schemes in the EU

30 June 2011

Among the conclusions, the Report states that cooperation between home and host state IGSs and between IGSs and supervisors is vital to ensure that policyholders are protected effectively if an insurance undertaking fails.

The IGSD needs to set the framework for cooperation and also ensure that IGSs have cooperation arrangements in place in practice and operate in accordance with these arrangements.

Examples of cooperation include, as far as legally and practically possible:

• acting as a point of contact for policyholders so that they can deal with a body in their own country;
• providing details of the identity and whereabouts of claimants;
• distributing information to claimants; and
• providing other practical assistance and advice to deal with claims for compensation.

The parties to the cooperation arrangements will need to agree the procedure and method for reimbursement of all administration costs which an IGS has incurred in providing assistance under the cooperation arrangements.

Full report

© EIOPA