EUROPE - The European Commission is planning to look at the problems of life insurance guarantee schemes in the European Union.

The Directorate General for Internal Market and Services has issued a tender for a contract worth up to €300,000 to examine the problems of the differing systems across the 25 countries in the EU.

"The purpose of this study is to examine the currently existing insurance guarantee systems in Europe for life and non-life insurance, excluding motor insurance, and to analyse the problems arising from the coexistence of different systems of insurance guarantee schemes," the tender states.

The 11-month study will analyse the different options available and look at their feasibility.

"Such a study should examine in particular the internal market aspects looking into the protection provided to policyholders, competition issues and cross border aspects," it states.

"The overall result should be a carefully reasoned and well-founded analysis. The results should provide a solid, practical and well-balanced basis for further policy considerations in this area."

There will be a maximum of four coordination meetings with the Commission in Brussels. The deadline for the tender is October 3.