Commission withdraws insurer backing on standard security devices

The European Commission has dropped its support for standard wording in contracts, piling pressure on insurers to end the practice.

The commission also withdrew its backing for insurers to co-operate on agreeing standard security devices for customers.

Both measures were dropped from the preliminary report covering what should be included in the insurance Block Exemption Ruling, which will be renewed in March next year.

It means any insurance companies that work together on standard wording in contracts and security devices face a greater risk of falling foul of European competition laws.

Their lawyers will have to carefully examine European guidance on security devices and policy wordings.

However, the commission will continue to back insurance pools and underwriters working together to produce and share statistics.

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