Spillover Effect

In the upcoming issue of The Insurer, we are publishing an overview of the impact the Hungarian red sludge spill may have on the CEE environmental liability insurance market. As usually, here's the sneak preview. Don't miss comments from Swiss Re, Munich Re, and Guy Carpenter.

As it usually happens in the aftermath of major ecological disasters, following the Hungarian red slugde spill official bodies hurried to review their approach to environmental liability. Just days after the catastrophe, the European Commission published a report on progress in implementing the Environmental Liability Directive (ELD). On paper, CEE leadership in the environmental protection sphere is undoubtful: countries of the region, especially Hungary, have met all key EDL requirements, sometimes bordering on their overfulfullment. Reality, however, seems strikingly different.