Revisiting Insurance Law: A Comparative Analysis of Policyholder Protections in the EU and the United States

Abstract

Background: Insurance law plays a pivotal role in ensuring the security of policyholders and the stability of the insurance market. The European Union and the United States, being major players in the global insurance market, have established distinct regulatory frameworks. The EU relies heavily on harmonized regulations that prioritize consumer protection, while the U.S. adopts a state-driven approach that emphasizes insurer autonomy. These differences impact cross-border operations, claim settlements, and consumer trust.
Objective: This study aims to provide a detailed comparison of policyholder protection laws in the European Union and the United States. The objective is to highlight the strengths and weaknesses of each framework and explore areas for potential harmonization to benefit insurers and consumers operating globally.
Methodology: The research employs a doctrinal legal analysis, examining primary and secondary sources, including legislative texts, policy documents, and judicial interpretations. A comparative approach is adopted to highlight systemic differences, and case studies are used to illustrate practical implications of these legal frameworks.
Findings: The study reveals that while the EU framework fosters uniformity and consumer fairness, its rigid structure can be challenging for insurers. Conversely, the U.S. model, with its state-specific regulations, allows for innovation but creates inconsistencies in policyholder protections. Harmonizing specific aspects, such as claims adjudication standards, could enhance efficiency and fairness across jurisdictions.