European Union: Insurance Laws and Products

Warranty and Indemnity insurance has become a standard feature in Finnish M&A transactions, yet many parties misunderstand its actual scope of protection. This examination reveals five critical coverage gaps that frequently catch buyers and sellers off guard, from the treatment of known risks to the challenges of proving losses. Understanding these limitations and how to address them through proper deal structuring can mean the difference between effective risk transfer and unexpected liability exposure.

These updates are intended to keep Maltese regulated entities informed of regulatory changes and developments taking place in the local financial services space.

The Insurance Recovery and Resolution Directive (IRRD), published in January 2025, introduces a harmonised EU-wide framework for pre-emptive recovery planning and resolution planning for (re)insurers.