Regulatory arbitrage at the EU insurance market – the phenomenon identification
Regulatory arbitrage at the EU insurance market – the phenomenon identification

Summary/Abstract: Regulatory arbitrage at the insurance market can develop as the consequence of fundamental law-making determinants in the EU (the specific nature of directives, common law and civil law), or can be related to the existing community regulations dedicated, in particular, to the insurance market (creating insurance products, supervision over insurance institutions), and can also result from regulations to take effect in the future (Solvency II). Regulatory arbitrage at the insurance (and financial) market cannot be ruled out, since wherever differences in legal restrictions occur there appear arbitrageurs who attempt to take advantage of these differences which, however, can be minimized by means of effective cooperation between the EU and national regulatory bodies, as well as the national and sectorial supervisory authorities.

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