The Federation of European Risk Management Associations has this week published its position paper on the revision of the EU Public Procurement Directives, in response to the European Commission’s public consultation, which proposes a series of policy options designed to introduce greater flexibility for public sector companies when purchasing insurance.

FERMA believes that current PPD requirements relating to public tenders for insurance are over burdensome, both on companies and insurers, and lack the flexibility to secure coverage in an efficient and cost-effective manner.

The association has called upon the European Commission to consider three policy options:

1. Adapting the PPD to introduce lighter requirements for insurance contracts. FERMA has identified several areas of possible regulatory improvement, although it believes this option does not solve the issues concerning the purchase of insurance.

2. Excluding insurance policies from the scope of the PPD. This would align with the existing exclusions of loans and other financial products and would be compatible with the overall objectives of the PPD.

3. Allowing ex post reporting on the purchase of insurance policies. This would provide a greater degree of transparency while giving public sector companies the flexibility they require. However, this option would nonetheless represent an additional administrative burden compared with an exclusion, FERMA notes.

Commenting on the proposed revisions, Typhaine Beaupérin (pictured), CEO, FERMA, said: “FERMA recognises the need for a robust and effective EU procurement processes. However, as it currently exists, the PPD acts as a significant drag on the ability of public sector companies to secure comprehensive coverage at a price in line with private companies.

“Further, the requirements disincentivise insurers from participating in public tenders which is detrimental to the resilience and competitiveness of the EU,” she added. “We therefore urge the European Commission to consider reducing the administrative burden it applies, excluding insurance policies from the scope of the directives, or allowing ex post reporting to enable greater purchasing flexibility.”

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