The purpose of this paper is to illustrate the use of a methodological
technique (grounded theory) in relation to European integration theory.
This is accomplished through categorisation and process, in conjunction
with theoretical coding (open, axial and selective). Indeed, the paper
builds a substantive theory to enhance our understanding of
intergovernmentalism and neo-functionalism (pre-existing formal
theories). In the aftermath of the Single European Act (SEA), the
beginnings of the Single European Market (SEM) and the Maastricht
Treaty it became evident that industries/sectors needed to involve
themselves in the creation of the European Union. This paper illustrates
the extent of industry/sector involvement through an empirical study of
European life insurance and in doing so investigates and clarifies a
number of theoretical propositions relating to the formal theories
