French GAREAT insurance pool

France provides some of the broadest Non-Life insurance cover for Terrorism of any country. Cover for losses resulting from terrorist attacks and acts of terrorism have been compulsory, in Non-Life insurance policies, since 1986.

1. The GAREAT terrorism risk pool scheme and CCR Unlimited Treaty

After September 11th terrorist attacks in New York and the sinister of AZF in Toulouse (France) in unclear circumstances, most of the reinsurers excluded terrorism cover from their treaties. That’s how a market solution imposed itself in France.

Established January 1st 2002, GAREAT – « Gestion de l’Assurance et de la Réassurance des Risques Attentats et actes de Terrorisme » – is a market structure, result of a public-private partnership, committed to managing the reinsurance of risk of terrorist attacks.

To be more specific, it’s a co-reinsurance pool, mandated by its members, the French or Foreign Insurance companies authorized to operate in the French market, to provide them with coreinsurance solutions for their Large Risk book of business (Sum Insured > € 20 million).

The GAREAT is completing the existing Guarantee Fund for Victims of Acts of Terrorism (FGTI).

The Guarantee Fund for Victims of Acts of Terrorism makes sure that any victim of a terrorist act in French territory, no matter its citizenship, receive a compensation for physical injuries. This affect most non-life lines of business except for marine, aviation and cyber risks and third-party liability.

It is mandatory for Insurance Companies which are members of the FFSA (French Federation of Insurance Companies) and the GEMA (Pool of Mutual Insurance Companies in France), and for Insurance companies non-members of the FFSA and non-members of the GEMA which want to benefit from the Unlimited Treaty of the CCR.