CCR Re Third party motor liability bodily injury claims 2016
Compensation of severe third party motor liability bodily injury claims in France - Analysis using CCR RE database 2016
THE CONCEPT OF FULL REPARATION
is a guiding principle in the compensation of bodily injuries and implies that the person responsible for the injuries must compensate the loss in its entirety and solely the loss, without privation or enrichment of the victim.
In contrast to its European partners, the French market is characterized by a constant spiral of severe bodily injury compensation costs primarily due to the absence of compensation tables, to the multiplicity of capitalization tables for future losses and to the unfettered discretionary powers of French magistrates.
Accordingly, since reforming the direct payment by third-party payers in December 2006, several discussions have been conducted and legislative proposals drafted in the aim of furthering the understanding of the principle of full reparation and evolving toward the harmonization of assessment tools and of compensation systems for bodily injury.
Some improvements, such as the implementation of a compensation toolkit, were prescribed by insurers in their "White paper" published in 2008 or had been put into place in the framework of the Lefrand Law Project of 2010.
More recently, the draft bill on the reform of third-party liability insurance, proposed by the Minister of Justice (Garde des Sceaux) in April 2016, introduced major rules relating to the compensation of bodily injuries within the French Civil Code.
In addition to the introduction of jurisprudence rules, the bill embodied recommendations aimed at furthering the equal treatment of victims, at harmonizing compensation payments and at significantly improving the certainty of bodily injury compensation costs.
It is therefore recommended to formalize a classification of the heads of loss, a universal medical scale, a repository indicative of compensation provided for non-economic losses, a regulatory capitalization table and a generalization of the principle of compensation in the form of the annuity payment of future losses (third-party assistance, future loss of earnings and loss of income by the victim’s family circle).
Likewise, this preliminary draft serves to confirm the vital importance of reparation in kind, as insurers already provide victims with assistance services and support in returning to work.
The aim of this study is to establish an objective report on the development of the foreseeable cost of severe bodily injury claims in France on the basis of the assessments that have been recorded in our database since 2005. It is an update that supplements the study conducted in 2012.
Motor bodily injury liability; Key figures
Each year, motor liability insurers pay upwards of € 4.35 billion to bodily injured victims.
CCR Re and motor bodily injury liability in France
- More than 29 treaties / 50 cedents in the motor liability line in France in 2015, representing over 60% of the motor market
- € 17.9 m premiums in 2015 (of an approximate total of € 420 m for Open Market Reinsurance)
- € 245 m motor bodily injury liability reserves in 2015 Duration: 10 years
- € 7.8 m motor liability insurance payments in 2015
- A motor bodily injury liability claims database updated since 2005