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Prediction: France: New developments on European group actions will significantly impact insurers

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Insurers will need to adapt to the introduction of the new European-style group action in France. On 25 November 2020, Directive 2020/1828 on representative actions was passed, to be applied by 25 June 2023. A number of countries, including France, have yet to transpose the Directive into national law. The Directive requires all EU countries to have in place a mechanism for representative actions, with Member States providing for cross-border representative actions; introduces a compulsory system for the disclosure of evidence held by the defendant or a third party for the benefit of victims; and provides that all the costs of the action are to be borne by the unsuccessful party (the 'loser pays' principle). The French reform also intends to allow civil penalties to be imposed. The introduction of such a European group action will inevitably have a significant impact on the cost of this type of lawsuit.