On August 2nd, FERMA responded to the public consultation run by the European Commission on the European Liability Directive (ELD). In its response, FERMA highlights three key messages, mainly in line with our previous answer from 2017:

  • As it stands, we do not believe that a reform of the ELD is necessary.
  • In particular with regard to making insurance compulsory for companies, which must be avoided.
  • It is necessary to emphasize the need for a more risk management approach.

Read FERMA’s full answer to the consultation here


On top of its three main messages, FERMA drew attention to three shortcomings in the ELD, namely:

  1. Cross-border issues. Indeed, some FERMA’s members face significant difficulties in finding insurance in other Member States than their own.
  2. There is a certain lack of knowledge regarding the directive and its obligations on the part of SMEs in general but also in certain markets.
  3. Some members also pointed out that they lacked the data and experience to assess the directive in a meaningful way, especially since there are divergences in implementation across Member States.

FERMA is fully committed to the objectives of the ELD and hopes that its contribution will give useful insights to the European Commission.

Read FERMA’s full answer to the consultation here