Workshop Implementation Efficiency of ELD
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1 Workshop Implementation Efficiency of ELD Introduction Brussels, 10th July 2009 Tanja Munchmeyer
2 Agenda Background Objectives of this study Methodology Current status Relevant preliminary findings Aims of this workshop 2
3 Background Current study on the Implementation Efficiency of the ELD and related Financial Security Issues for the European Commission DG ENV aims to: Provide first insight into practical ELD implementation Thereby provide the Commission with information to meet reporting requirements set in Art. 14(2) of the ELD Study to be finalised by October
4 Objectives of the study The main objectives of this study are to update and complete information gathered in the first study with a focus on: Transposition progress and approaches taken by MS to promote the development of financial security instruments Availability of insurance and other financial security instruments, also looking at context of SMEs Provide first information on ELD cases Achieve a better understanding of the position of operators in this context 4
5 Methodology 1. Stakeholder Consultation Questionnaires and structured interviews to gather information from MS, re/insurers, brokers, and operators 2. Desk study of existing relevant publications and internet sources to complement questionnaire responses 3. Evaluation of information from stakeholders 4. Workshop To discuss and analyse relevant information with key stakeholders and experts 5
6 Current status 1. MS consultation 15 MS have been interviewed or answered a questionnaire: (Austria, Belgium (Brussels region), Bulgaria, Cyprus, Czech Republic, Estonia, France, Germany, Hungary, Ireland, Netherlands, Poland, Slovakia, Sweden, and the UK*) 2. Insurance sector consultation Focus on market leaders as well as those who decided not to enter the market In-depth interviews with 13 insurers, 1 reinsurer, and 2 brokers have been conducted at this point 12 more interviews to take place * Please note that the results of the consultation with Czech Republic and the UK are not yet included in the preliminary findings 6
7 Current status (cont d) 3. Operators consultation The operators questionnaire has now been sent out and results are expected by the end of August ELD cases Currently gathering further information on potential cases in Hungary, Poland, Spain, and the UK as well as new cases 5. Alternative financial security instruments Further information currently gathered and analysed 7
8 Relevant preliminary findings 1. MS consultation 1/3 of consulted MS describes the development of the ELDrelated insurance market as good or advanced: Basic Good Advanced Belgium Bulgaria Cyprus Estonia Ireland Poland Sweden France Germany NB: This does not correspond to the perception of some of the insurers that were interviewed Please note that a more detailed discussion of preliminary findings can be found in the background paper of this workshop 8
9 Relevant preliminary findings 1. MS consultation (cont d) Main reasons hindering further development of the ELDrelated insurance market: Lack of knowledge of operators and brokers Unavailability of data / Difficulties in premium and risk calculation. NB: Many insurers see this as a difficulty that can be overcome No possibility to impose extra burdens on operators (economic crisis) Please note that a more detailed discussion of preliminary findings can be found in the background paper of this workshop 9
10 Relevant preliminary findings 2. Insurance sector consultation No clear picture on the extend to which ELD liabilities can be covered, irrespective of MS the interviewees are based in No clear results of how difficult it is to findreinsurancebut it seems to be possible Assessment of product uptake ranges from disappointing (UK only) to very good (Germany only). No correlation to the (planned) financial security regime in place Please note that a more detailed discussion of preliminary findings can be found in the background paper of this workshop 10
11 Relevant preliminary findings 2. Insurance sector consultation (cont d) Most effective measure to increase product uptake is thought to be extensive media coverage of a big ELD case Sectors with highest rates of ELD-related insurance uptake are the chemical and waste management sectors: Please note that a more detailed discussion of preliminary findings can be found in the background paper of this workshop 11
12 Aims of this workshop This workshop attempts to address the following key questions: What are the main (future) difficulties in implementing the ELD for MS authorities? What is the effective status of the ELD-insurance market development? What remain the most persisting barriers? Are alternative financial security instruments available? What are the most important ones among these instruments? How do operators react to the ELD implementation? Are we seeing first incidents falling under the ELD? What do these experiences say about ELD implementation? Would mandatory financial security increase the efficiency of ELD implementation? 12
13 Key Contacts Thank you for your attention Bio Intelligence Service Shailendra Mudgal Tanja Muenchmeyer Leonardo Mazza Tel:
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