Insurance Guarantee Schemes

Insurance Guarantee Schemes (IGS) protect policyholders when an insurance company fails and cannot pay its debts. IGS financially compensate policyholders or facilitate policy transfer to another provider.

Across the EU, IGS are not harmonised, however. The types of insurance covered, how much and even funding differ. Where an insurer is headquartered can impact whether a consumer is compensated or not. Consequently, policyholders experience different outcomes across the EU.

While banking and investment have harmonised guarantee rules, insurance is an outlier, leaving many consumers exposed. An EU-wide approach is therefore needed.