(Reuters) – The European Union's executive body on Tuesday called for caution in the face of calls for a public-private system to insure companies against economic barriers in future pandemics.
"This is a very complex debate and needs time to mature," said John Berrigan, Head of Financial Services at the European Commission, an event for Insurance Europe.
"I would like to call for some caution here when looking at the feasibility of all types of action at EU level. ”
Mr. Berrigan said such a partnership program would require significant financial support from Member States that have already spent huge sums to support the economy under lock and key.
There is also a need to evaluate the ability of the insurance sector to participate in public-private pandemic insurance.
Governments in the United Kingdom and the United States have also discussed government-backed pandemic reinsurance systems, but industry sources say progress is slow as countries continue to fight the current pandemic.
Mr. Berrigan said that the European Commission and the group's insurance regulator EIOPA will examine the need for simpler and clearer information about products and what type of insurance consumers will need after COVID.
Oliver Baete, CEO of the German insurance company Allianz, said in the incident that insurers could not cover the costs of locking on their own.
"We can not insure a government ̵
"We must protect our capital very carefully, otherwise the industry will quickly go bankrupt."