A study of Financial Assurance Requirements of Environmental Pollution Liability：An Analysis of Liability Insurance

Abstract

This article shows that it is necessary to establish a financial Assurance mechanism to deal with the huge costs that may be incurred after the accident when the risk of environmental pollution increases gradually And it focuses on liability insurance and discusses its suitability as a guarantee system from the perspective of risk and system function In theory the insurance market can effectively allocate the cost of environmental damage and provide incentives and risk control to prevent liability abrogation However some factors such as the insurability of pollution may increase the operational risk of insurance which is the potential limitation of environmental liability insurance This article discusses the development of environmental liability insurance and financial assurance requirement in different countries Environmental liability insurance has been developed for many years in many countries while Taiwan’s environmental liability insurance is still in its infancy In the past liability insurance often caused many disputes when underwriting pollution liability in the United States As a result disputes arising from the practice of underwriting pollution risks in the American insurance market are discussed in this article as well Finally in order to put forward relevant suggestions on the construction of environmental liability insurance this article also reviews the disputes that may be caused by the current environmental liability insurance contract in Taiwan

Date of Award	2020
Original language	English
Supervisor	Jing-Huey Shao (Supervisor)