The European Commission’s (EC) proposals for the liability framework could increase legal uncertainty and would likely reduce the affordability and availability of insurance cover, Insurance Europe said.
The organization recently published a series of key messages on the European Commission’s proposed revision of the Product Liability Directive (PLD) and its proposed Artificial Intelligence (AI) Liability Directive. ).
According to Insurance Europe, the industry appreciates the EC’s efforts to align the product liability legislative framework with market realities. However, he believes that the proposal, as currently drafted, is unlikely to contribute to the intended objective of greater peace of mind for consumers.
He said: “To ensure that insurers continue to provide the protection and cover that their policyholders need and expect, the Commission’s proposals would require significant improvements.
This would include increasing legal certainty and clarifying the scope and certain other concepts and definitions introduced in the proposals.
“In this regard, it will be important to avoid unnecessary changes and overlaps with existing rules and regulations.
Regarding the PLD, Insurance Europe pointed out that the current proposals would have a negative impact on the availability of insurance and therefore would not achieve the intended objective of improving consumer protection while encouraging innovation.
Regarding AI, the organization noted that it appreciated the intention to facilitate the compensation of victims of damage related to (AI). However, the framework would create legal uncertainty and discourage technological development.
Insurance Europe added: “The insurance industry is concerned that the frameworks, as proposed by the Commission, will disproportionately increase the burden on producers, while failing to increase consumer protection.
“Not only will this lead to litigation in an excessive number of cases; it is also likely to impact the affordability and availability of insurance coverage.
