Could The EU Single Market Dream Be Destined For Failure?

In strict legal theory, the European 'passport' should now be firmly established across the EU. It embraces the principle of free trade enshrined in EU law and Treaty rights.

In the case of an insurer licensed in one Member State (known as the Home State), the EU passport means it can operate on a freedom of services or establishment basis in other EU Member States (known as the Host State) without the requirement for separate licensing in each territory and on the basis of Home State prudential supervision. Of course, where the foreign insurer is licensed outside the EU, the 'passport' does not apply and instead each jurisdiction will enact its own regulations as to whether (if at all) foreign insurers are permitted to write local business.