EU approach to the insurability of the liability for damage to the natural environment

Abstract

This paper proposes an analysis of the possible means for eliminating risks due to liability for environmental damage caused by the actions of an operator whose activities potentially threaten the natural environment and may cause biodiversity damage. Risks are assessed with regard to risk in­su­ra­bi­li­ty criteria for potential damage to the natural environment. The importance of risk management is stressed in the new form known as Enterprise Risk Management. Risk management is becoming increasingly important as part of the Solvency II concept, currently in preparation by European Commission, whose first and second pillars accent risk management in financial institutions and con­sis­tent quantification of existing, hidden and potential risks.This paper focuses on an analysis of specific presumptions about the insurability of risk as concerns environmental insurance. The paper was written as part of research project MSM 6215648904, carried out by the Faculty of Business and Economics, under the name “The Czech Republic in the pro­ces­ses of integration and globalization, and the development of the agriculture and service sector in the new conditions of the integrated European market”, following the goals and methodology of the research project.

Keywords

• environment
• insurer
• insurance market
• environmental insurance
• insurability
• liability insurance