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Increased regulation and awareness drive demand for environmental cover in Europe

2016 Environmental Market Update


There has been a marked increase in the number of companies purchasing environmental impairment liability (EIL) cover across Europe in recent years, mainly due to an increase in regulation and awareness.

Marsh’s 2016 Environmental Market Update examines the state of the environmental impairment liability (EIL) insurance market across Europe, including:

  • The increased demand for environmental insurance to cover potential environmental liabilities, largely as a result of a tightening of environmental regulation, an increased understanding of gaps in traditional insurance coverages by insureds, and regulators being more active, which has subsequently increased the cost of claims.
  • The increase in the average limits of indemnity being obtained by companies across Europe.
  • The market trends driving the steady rise in demand for environmental insurance since 2011, which reflect the increase in the perceived risk.