FERMA has this week reiterated its call for insurance policies to be excluded from the scope of the revised EU Public Procurement Directives.

The association argues that rigid procurement procedures continue to deter insurer participation in public tenders, reducing capacity and driving up costs for public sector buyers. FERMA says excluding insurance would better reflect the fast-moving nature of the insurance market, and align with existing exemptions for other financial products.

Commenting on the organisation’s position, Laurent Nihoul, CEO of FERMA, said access to sufficient and affordable insurance coverage is vital to public sector resilience and in the best interests of the public, who ultimately bear the losses sustained when risks are not transferred to the insurance market.

“Rigid public procurement procedures are not well suited to insurance and discourage insurer participation, reducing capacity, weakening coverage and potentially increasing premiums for public sector entities,” he added. “Like other financial services already excluded from the PPD, insurance operates in fast-moving markets where prices and conditions change rapidly. Excluding insurance from the scope of the directives would therefore be a logical and consistent step, helping to ensure public sector access to sufficient and affordable insurance in the interest of resilience and citizens alike.”

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