The Impact of the European Union on the Non-Life Insurance Industry

Author

Sharlene M. Tenaglia, Fontbonne College

Year of Award

1994

Degree

Master of Business Administration (MBA)

College

College of Business & Professional Studies

Degree Program

Business Administration

Department

Business Administration

Keywords

EU, governments, Europe, International, treaty

Abstract

From the introduction of the European Reconstruction Plan for economic recovery following World War II, the European Union has evolved into the world's largest trading block. Sweeping changes in Europe have had a profound effect on globalization of the insurance industry. Several political and economic forces have changed the commercial landscape of the European Union affecting the non-life sector of the industry. Theories advanced in the early 1980s claimed that greater competition created by the European Community Single Market Program would reduce prices and increase capacity. However, recessionary conditions, privatization of government-owned industries, alternative markets and shaken confidence in the London markets and Lloyd's have taken their toll on the earlier predictions. Today the non-life commercial insurance industry is a US$360 billion global industry. The barrier-free environment of the emerging European Union has caused deregulation to improve competition and stimulate the economy while presenting opportunities for organizations willing to accept and make change. On the other hand, in an era of deregulation and increased standardization, many insurance syndicates and companies have financially collapsed causing increased prices, reduced capacity, and changes in the structure of the non-life insurance industry for the foreseeable future. Many of the aims of the Third Council Directive on the coordination of laws, regulations, and administrative provisions related to direct insurance other than life assurance, and measures in the strategic business plan to rebuild Lloyd's of London will have a major influence on and bring discipline to the non-life insurance industry.

Document Type

Restricted Thesis

Recommended Citation

Tenaglia, Sharlene M., "The Impact of the European Union on the Non-Life Insurance Industry" (1994). All Theses, Dissertations, and Capstone Projects. 194.
https://griffinshare.fontbonne.edu/all-etds/194