Emerging Legal Frontiers in Insurance

Table of Contents

1. Frontmatter

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2. Part I: Digital Realities and Technological Disruptions in Insurance Law

   1. Frontmatter

   2. The Legal Challenges Surrounding Transactions in the Metaverse: The Case of Insurance

      • Open Access

      T. Koezuka

      Abstract

      The Metaverse-World is often regarded as an extension of the Real-World, with avatars seen as extensions of their users’ physical bodies. However, the legal nature of the Metaverse-World depends on how it is defined in the terms of use established by Metaverse Operators. Emphasizing the legal effect of these terms supports viewing the Metaverse-World as independent from the Real-World, with avatars positioned as autonomous actors within it. Granting legal personality to such avatars becomes a conceivable option. From this perspective, transactions involving the Metaverse-World can be categorized into four types, based on where the transaction occurs and where the object of the transaction exists. Each type entails specific risks, and liability for resulting harm generally rests with the Metaverse Operator. Where such liability is excluded, insurance contracts tailored to each transaction type should be developed to address the associated risks.

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   3. Bringing Trustworthy Robo-Advisers into the Insurance Distribution Process: An Accountability Perspective

      • Open Access

      S. Li

      Abstract

      Robo-advisers have been increasingly developed and deployed in the process of insurance distribution. While they play an important role in facilitating insurance distribution, concerns have also emerged regarding their lack of transparency and potential to cause harm to end users. The involvement of multiple actors throughout the lifecycle of a robo-adviser further complicates the question of accountability. Against this backdrop, examining robo-advisers through the lens of accountability becomes essential. This chapter explores this issue within the framework of both existing and newly introduced EU legislation, contributing to the assessment of the effectiveness and adequacy of the current legal mechanisms governing robo-advisers.

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   4. Chinese Perspective on Representation Duty in Blockchain-Based Insurance

      • Open Access

      C. Luo

      Abstract

      This chapter focuses on the duty of representation in insurance under the assumption that blockchain technology will be widely used in pre-contractual stage. A few firms in China are already providing blockchain-based insurance, where pre-contractual obligations are performed on blockchain and it may become more popular in the near future. From an optimistic perspective, using blockchain may help insurers to reduce some legal risks of misrepresentations. However, it may not be sufficient to solve all issues when the root cause of the problem is the legislative deficiencies. Moreover, a series of new legal issues will emerge in blockchain-based insurance, especially as individualized products are likely to reshape the legal relationship between insurers and applicants in the pre-contractual stage. Future laws should respond to new changes brought by emerging technology.

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   5. The Impact of Copyright Law on Insurance Distribution: The Development of the Insurance Market Within Economic Efficiency/Inefficiency of Copyright Monopolies

      • Open Access

      A. Nowak-Gruca

      Abstract

      The aim of the chapter is to examine the impact of copyright monopolies on the distribution of insurance. The research used the economic analysis of law (EAP) method. The chapter focuses on the issue of assessing the status of an insurance product as a work under copyright law, as well as the challenges in defining protection and distinguishing objects protected by copyright from those that belong to the public domain. In the context of knowledge, technology, and intangible goods, from the perspective of EAP, leaving certain resources in public domain can lead to significant social benefits and mitigate the negative effects of knowledge monopolization.

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3. Part II: Jurisdictional Perspectives and Cross-Border Insurance Market Dynamics

   1. Frontmatter

   2. Cross-Border (Life) Insurance Business: A Constant Goal with (Almost) Impossible Legal Obstacles

      • Open Access

      S. Stolz

      Abstract

      The pursuit of a unified European market for life insurance has encountered formidable legal barriers, despite three decades of regulatory efforts by the European Union. Although insurers have been authorized to conduct cross-border business under the freedom of establishment and the freedom to provide services, national markets remain largely insular due to enduring legal complexities. This paper examines the obstacles impeding the cross-border life insurance business, focusing on regulatory and private law challenges. It assesses the impact of EU initiatives on harmonizing insurance law. While the single license principle theoretically enables cross-border operations, its effectiveness is compromised by national interpretations and the imposition of General Good Requirements (GGR). Additionally, the diversity in national insurance contract laws, varying pre-contractual information obligations, and mandatory rules complicate the creation of a standardized European (life) insurance products. The paper argues for increased flexibility in choice of law and the development of a unified private insurance law to facilitate a genuine single market. It also critiques the Pan-European Pension Product (PEPP) as a promising but flawed initiative, highlighting the need for a comprehensive review to better support cross-border life insurance business.

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   3. Group Insurance in Comparative Perspective: Ensuring Fairness, Efficiency, and Beyond

      • Open Access

      M. Fras

      Abstract

      Group insurance constitutes a significant segment of the insurance market, yet it lacks a unified definition at the level of European Union law, including within Directive (EU) 2016/97 (IDD). Member States regulate group insurance differently, and many legal systems do not provide any specific legal framework for this form of insurance. This article presents a historical and legal analysis of the development of group insurance and identifies key legal issues affecting its operation. Particular attention is given to the duty to inform and advise, the process of claiming benefits under group insurance contracts, the determination and payment of premiums, the right to withdraw from group insurance, and the principles of individual continuation of coverage. The analysis demonstrates that addressing these issues is essential for ensuring that group insurance functions as an effective instrument of insurance protection.

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   4. Legal and Economic Aspects of Co-Opetition Among Insurance Brokers: The Polish Case

      • Open Access

      M. Kawiński, M. P. Ziemiak

      Abstract

      This article explores the phenomenon of co-opetition – simultaneous cooperation and competition – within the insurance brokerage sector, with a particular focus on the Polish market. While co-opetition has been widely studied among insurers, especially in the context of coinsurance and consortia, its application among intermediaries such as insurance brokers remains underexplored. The study examines the legal and practical dimensions of broker collaboration in Poland, where no specific legislation governs such cooperation. Drawing on empirical data from surveys conducted prior to the annual Congress of Insurance Brokers, the article identifies key motivations for and barriers to co-opetition. Findings suggest that collaboration is often client-driven, influenced by risk complexity, specialized needs, and international engagements. Despite the absence of a formal legal framework, co-opetition among brokers is prevalent and evolving, shaped by market practices and general civil law principles. The study highlights the need for updated regulations to support effective and fair collaboration, suggesting that co-opetition is a natural and beneficial strategy in a competitive yet specialized intermediary market.

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   5. The Importance of EU Soft Law in Insurance Distribution: The Case of Poland

      • Open Access

      M. Szaraniec

      Abstract

      The introduction of new technologies in the insurance market is mainly based on market self-regulation through soft law. The aim of this article is to analyze this self-regulation by national supervisory authorities in the absence of legal solutions related to new technologies at the EU level. The structure of the EU insurance market argues in favor of regulating the use of new technologies by insurance distributors as soon as possible, as well as ensuring the harmonization and consistency of legal solutions for the entire insurance market at the level of individual Member States. The author analyzes the legal structure of guidelines and recommendations at EU level and in Polish law, proposing de lege ferenda conclusions in this regard.

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