Chairman of GAREAT, CEO of La Réunion Aérienne et

Gareat : dialogue engagé avec l’AMRAE
Résultats actuels et perspectives
6 février 2014
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Gareat : dialogue engagé avec l’AMRAE
Résultats actuels et perspectives
Intervenants
Christophe GRABER
Chairman of GAREAT, CEO of La Réunion Aérienne et Spatiale
Emmanuel BRULE
President Commercial Insurance EMEA
Philippe MARAUX
Managing Director, Head of Departments
Property, Marine &Energy, Aviation & Space
Modérateur
Laurent BARBAGLI
Risk & Insurance Manager
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Gareat : dialogue engagé avec l’AMRAE
Résultats actuels et perspectives
French Reinsurance Terrorism Scheme
GAREAT, origin and evolution from 2002 to…?
AMRAE 2014, Deauville.
Presentation by Christophe Graber,
Chairman of GAREAT, CEO of La Réunion Aérienne et Spatiale
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Regulation in France
 Terrorism insurance: legal obligation, since 1986, for insurers operating in
France to cover property damages and business interruption
consequential to terrorism.
 Insurance Code: Article L 126 – 2 (2006) inclusion of NBCR
 Definitions of terrorist attack : Criminal Code: Article 421-1 & following
 Critical situation regarding Insurance and Reinsurance after 11/09/2001
→ Creation of GAREAT as at 1/1/2002, joint effort between Insurers,
Reinsurers and French State
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Qualification of the « Generating
fact »
 Members must provide GAREAT with all necessary information
 The Loss Settlement Committee will rule on the information and will report
to The Board of Directors
Bodies involved in loss
qualification
GAREAT BOARD
CCR has a seat
Losses < EUR 20 000 000
Board meeting decision
Losses from EUR 20M up to
EUR 100M
Losses above EUR 100M
Board meeting decision
Board meeting decision
CCR consulted
CCR
CCR negative opinion
binding on GAREAT until
infirmed by a Court
decision
FRENCH AUTHORITIES
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Idem +
CCR refers to French
authorities
French authorities give
opinion
Gareat - Fundamentals
 GAREAT is a Reinsurance Pool
 GAREAT is composed of 2 sections managed distinctly
Large Risks section
. Operational since 01/01/2002
. Policies with *SI ≥ 20 million euros (no PML)
Small and Medium-sized Risks section
. Operational since 01/01/2005
. Policies with *SI < 20 million euros (no PML)
 Joint and several liability between members of a same section
 Coverage **PD and BI*** losses consequential to terrorism, sustained in National
Territories (as defined), whatever the causes are (including ****NBCR) and
wherever they originate from
 No anti-selection; members must cede all their business covered by GAREAT
 Waiver of subrogation for Motor liability (free) between Members and Motor
insurers, allowing transfer of liability from Motor policies
 Retrocession prohibited
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Territorial scope
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GAREAT Reinsurance Schemes
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GAREAT Large Risks
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Risks Covered
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Reinsurance premium rates
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GAREAT 2014 Large Risk Scheme :
Reinsurance Programme 12 month
at January 1st 2014
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Large Risk Premium Distribution
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Large Risk Premium Distribution
2002 - 2013
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Statistics
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GAREAT Large Risk – Reinsurance
Programme History
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Evolution of the Large Risks Scheme
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THANK YOU FOR YOUR SUPPORT
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Annexes
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Risks Covered (1)
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Risks Covered (2)
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2002 to 2013 : Evolution of the
Industrial Risk Index and the
GAREAT premium
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2013 Large Risks split by SI / Policies
/ Premium as at June 30th 2013
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SI ≥ 150 Million Euros Risks Profile
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2013 Locations SI ≥ 150 Million
Number of Locations and SI per Activities
Sum insured € Billion
(xx) Number of locations
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2013 Locations SI ≥ 150 Million
Number of Locations per “Department”
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2013 Locations SI ≥ 150 Million
Number of Nuclear Locations per
“Department”
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Regulation
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3
0
Code des Assurances
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Insurance Code – Free Translation
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Code penal
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Criminal Code – Free Translation
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Code penal – Free Translation
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Criminal Code – Free Translation
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Overview of the various
Terrorism Pools
•Emmanuel Brule
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Main Terrorism Pools
Belgium
TRIP
Netherlands
NHT
UK
Pool Re
Germany
Extremus
France
Gareat
USA
Austria
TRIPRA
OVDT
Spain
Consorcio
Australia
ARPC
S. Africa
SASRIA
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Australia - ARPC
UK
Pol Re
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Belgium - TRIP
UK
Pol Re
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Germany - Extremus
Terrorism law




Terrorism coverage is not compulsory
Cession to the pool is optional
Euro 1.5 Billion limit and Euro 10 Billion annual aggregate
No NBCR
Pricing structure
 By zones
Pool premium
 US$ 72 millions
 Funded
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Netherlands - NHT
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South Africa - Sasria
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Spain - Consorcio
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UK – Pool Re
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US – TRIPRA
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Summary of Key characteristics
Country
Pool
name
State
Direct
implication vs R/I
Trigger
Terrorism
compulsory
Pool
cession
Pool
pricing
Pool annual
premium
Australia
ARPC
Yes
R
State
No
Optional
By zones - 2%
to 12% of GPW
AUD 132m /
US$ 120m
Austria
OVDT
C
R
Insurer
No
Optional
By zones 0.75% to 4% of Non Available
TSI
Belgium
B
C
R
Market
committee
Subject to
risk class
Optional
Included in PD /
BI rate
Euro 17m /
US$ 23m
N
B
C
R
GAREAT
Yes
Compulsory
By size - 6% to
18% of GPW
Euro 200m /
US$ 270m
PD/BI, inland
vehicles
N
B
C
R
Extremus
No
Optional
By Zones
Euro 53m /
US$ 72m
Euro 1Bn
PD/BI, inland
vehicles
N
B
C
R
NHT
No
Optional
Included in PD /
BI rate
Euro 22m /
US$ 30m
US$ 66m
US$ 210m
PD / standing
charges
N
B
C
R
SASRIA
No
By size Compulsory 0.003% to 0.05%
of TSI
US$ 117m
Direct
Policy limit
Unlimited
PD/BI
N
B
C
R Consorcio
Yes
Compulsory
By size 0.015% to
0.195% of TSI
Non Available
Yes
R/I
Policy limit
Unlimited
PD/BI
N
B
C
R
Pool Re
No
Optional
By zones 0.006% to 0.3%
of TSI
GBP 32m /
US$ 53m
Yes
Backstop
PD/BI,
Casualty, WC
N
B
C
R
State
No
Optional
Non Applicable
None
Limit
Aggregate
Scope
R/I
Policy limit
US$ 10Bn
PD/BI, Public
Liability
N
B
C
No
R/I
Euro 5m
Euro 200m
PD/BI
N
B
TRIP
Yes
R/I
Euro 75m
Euro 1Bn
PD/BI
N
France
GAREAT
Yes
R/I
Policy limit
Unlimited
PD/BI, inland
vehicles
Germany
Extremus
Yes
R/I
Euro 1.5Bn
Euro 10Bn
Netherlands
NHT
Yes
R/I
Euro 75m
South Africa
SASRIA
Yes
Direct
Spain
Consorcio
Yes
UK
Pool Re
USA
TRIPRA
Policy limit US$ 100Bn
Coverage
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Key characteristics
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AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. Products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Not all products and
services are available in every jurisdiction, and insurance coverage is governed by actual policy language. Certain products and services may be provided by independent third parties. Insurance products may be distributed through affiliated or unaffiliated entities. Certain property-casualty
coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.
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Assurance du Terrorisme en France
Perspectives
Philippe MARAUX
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Assurance du Terrorisme en France
Le groupe de travail AMRAE
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Assurance du Terrorisme en France
Pistes étudiées
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Assurance du Terrorisme en France
Pistes étudiées
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Assurance du Terrorisme en France
Pistes étudiées
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Assurance du Terrorisme en France
Pistes étudiées
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Assurance du Terrorisme en France
Les évolutions au 1er Janvier 2014
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Assurance du Terrorisme en France
Les évolutions au 1er Janvier 2014
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MARSH S.A.S.
Société de courtage d'assurances - Société par Actions Simplifiée
Capital 5.807.566,00 Euros - RCS Nanterre : 572 174 415 - n° ORIAS 07 001 037 - www.orias.fr
n° TVA intra-communautaire : FR 05 572 174 415
Siège social : Tour Ariane - 5, Place des Pyramides - 92800 Puteaux
Assurance de responsabilité civile professionnelle et Garantie financière conformes aux articles L512.6 et L512.7 du code des assurances
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