CCR and policies covering terrorist attacks and acts of terrorism - CCR
TERRORIST ATTACKS AND ACTS OF TERRORISM
For property damage resulting from terrorist attacks and acts of terrorism, CCR provides State-guaranteed unlimited reinsurance coverage.
10/21/2022
France is one of the countries offering the most extensive forms of property coverage against acts of terrorism.
Since 1986, the date on which specific legislation came into effect, property coverage against attacks and acts of terrorism has been compulsory for all property insurance policies This coverage applies mainly to consequential property damages to terrorist attacks or acts of terrorism occurring on French soil. It is governed by Articles L126- and R126-2 of the Insurance Code.
In 2002, the market took measures to put into place coverage solutions adapted to its needs. CCR played an essential role in this endeavor.
Since January 2006, not only the consequences of conventional attacks are covered, but also those caused by the use of a dirty bomb (NRBC agents).
Personal injury is compensated by the FGTI (Fond de Garantie des Victimes des Actes de Terrorismes et d'autres Infractions).
Small and medium risk cover
Small and medium risks are risks for which the sum insured is less than € 20 million. Insurers remain free to cede or retain their risks.
CCR's offer:
Since 1 January 2006, CCR has offered insurance companies unlimited State-guaranteed cover for small and medium risks falling within the scope of the compulsory cover.
This cover is taken out:
- either individually by each company upon request,
- or, since January 1, 2013, by a specific group of companies [entities belonging to a single group, SGAM (a mutual insurance group company), pool, etc.]. In the latter case, the group of companies acts jointly as the “cedent” under the treaty. An authorized representative of the insurance companies concerned (for example GAREAT) handles all dealings with CCR on behalf of the cedent including treaty performance.
Large risk cover
Large risks are defined as those risks for which the insured sum is € 20 million or more.
GAREAT "Large Risks" protects its members by providing a pooled annual excess of loss reinsurance scheme to the market, the limits of which are set at € 2 800 billion (threshold valid from 2022, which will remain constant until 2025).
CCR's offer
- CCR supplements this scheme by providing GAREAT "Large Risks" with unlimited State-guaranteed cover above this limit. This cover only concerns risks falling within the scope of the compulsory cover in compliance with article L-126 2 of the French insurance code.
- Whether for large risks or small and medium risks, CCR's intervention follows the scope of coverage defined by the law.
Focus on GAREAT
Created in January 2002, following the attacks of September 11, 2001, GAREAT (Management of the Insurance and Reinsurance of Risks of Terrorist Attacks and Acts of Terrorism) is a French Economic Interest Grouping (GIE). The purpose of the GIE is to cover terrorism consequential property risks.
Insurers who are members of France Assureurs are obliged to join GAREAT for the large risks section.
