Who's afraid of an open insurance market?

Although until recently foreign markets were profitable only for insurers dealing with commercial risks, it may be assumed that the development of the free insurance market will have an impact also on the insurance of consumer risks. The insurer may remain passive in the hope that the prospective policy-holder will take the initiative to cross the border, or he may actively involve himself by advertising his services in the foreign country. In these endeavours, the insurer will need the support of the insurance intermediary. It is therefore to be expected that the popularity of the so-called broker's cover will increase vastly. This will not enhance the transparency of the insurance market. The option, open to the EC Member States, to decide whether or not to go for freedom of choice of law rule, does not make it easier to coordinate and harmonize private international insurance law among the Member States.