The objective of the Group’s insurance policy is to provide the best protection of Group assets and people from the occurrence of major and insurable risks that could adversely affect it.
For that purpose, the Group has implemented global insurance programmes (in particular for Property Damages & Operating Losses, Third-Party Liability, Cyber, Transport, Credit Insurance and Construction) that harmonise coverage and optimise insurance cover for all its subsidiaries throughout the world, except in countries where regulations do not allow this type of arrangement (see “Restrictions” below). National programmes have been set up in the countries in which global programmes cannot be deployed.
This policy is applied as follows:
The financial solvency of insurers chosen is an important criterion in the Group’s insurer selection process. Most of the insurance programmes subscribed by the Group involve co-insurance between the various major players in the international insurance market.
This global programme subscribed for the benefit of all Group subsidiaries (except where local Restrictions apply) includes, in particular, civil operational liability, product liability and damage to the environment that is sudden and accidental.
It covers the financial consequences of the civil liability of Group entities, to the extent that they are liable.
Fire, lightning, explosion, theft and natural disasters are insured within the limits of the products available on the insurance market.
The Group has set up a global programme to cover all its property, chiefly fixed assets and inventories (except where Restrictions apply). This cover also includes a portion on operating losses directly resulting from covered property loss or damage.
As the capacity of the insurance market is limited for certain risks, this programme includes sublimits, particularly as regards natural disasters.
Through its reinsurance subsidiary, the Group carries risk retention levels that are not material at consolidated level, and these are applicable over and above local deductible amounts.
Finally, the insurance offering includes prevention inspections for the Group’s sites conducted by specialist departments of the leading insurer.
A Cyber insurance policy provides financial cover for the consequences of IT-related risks, subject to exclusions and warranties available on the market.
As it is a “multi-risk” policy, cyber risk insurance comprises several components.
The Group has set up an insurance programme to cover the transportation of all its products. All subsidiaries benefit from the protection offered by this global programme, which ensures that appropriate and uniform cover for risks related to the Group’s logistical operations is provided (except where Restrictions apply).
Group subsidiaries must set up credit insurance, assisted by the Group and under the terms and conditions negotiated, in addition to their own credit management policy, provided that insurance cover compatible with their level of sales activity is available under financially acceptable conditions.
The primary aim of the global Buildings insurance programme is to standardise the conditions for covering projects of all sizes in all countries, as well as to disseminate a general Buildings insurance policy, centralised Corporate management and, lastly, warranty optimisation.
