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98 2014 Registration Document
Corporate governance
3
Risk management
Thus, the Group has a solid understanding of the limits of coverage in
place, and the certainty that its insurance programmes have been taken
out with insurers having an international reputation.
◗
Acquisitions during the year
Carrefour group ensures that acquisitions over the course of the insurance
year quickly obtain this comprehensive coverage, or, where applicable,
benefit from its DIC/DIL (difference in conditions/difference in limits)
coverage policies, in order to ensure solid control over existing coverage
and benefits.
◗
Prevention policy
Carrefour group’s insurance policy requires that risk prevention measures
be monitored by the Risk and Compliance department in coordination with
local Group liaisons in each country, as well as with the Group’s insurers.
◗
Transfer of risk to the insurance market
The Group transfers identified insurable risks to the insurance market
or self-insures, in accordance with the Group insurance policy and
consistent with the Group’s general policies.
◗
Self-insurance of certain risks
In order to optimise insurance costs and better manage risk, the Group has
a policy for maintaining its frequency lines through its captive insurance
and re-insurance companies for certain risk categories. The results
of these captive companies are consolidated in the Group Financial
Statements.
3.5.3.2
Information concerning the main
insurance programmes
The following information is provided for information purposes only in
order to illustrate the scope of action in 2014. This information should
not be regarded as static, since the insurance market is constantly
changing. Indeed, the Group’s insurance strategy depends on and adapts
to insurance market conditions.
◗
Property Damage and Business Interruption
This insurance protects the Group’s assets through an “all risks, with
exceptions” policy, on the basis of guarantees and underwriting capacity
available on the insurance market to cover the traditional risks for this
type of coverage, which include fire, lightning, theft, natural disaster
and operating loss.
The limits of property damage and business interruption are consistent
with those of an international retail company. Deductibles are established
as appropriate for the various store formats.
Exclusions in force for this policy comply with market practices.
For subsidiaries in Europe in what is known as ‘free service provision’ zone,
this coverage is acquired through the direct captive insurance company.
For subsidiaries located outside the European ‘free service provision’
zone, the Property Damage and Business Interruption programme is
reinsured through the captive insurance company.
A stop-loss provision per claim and per insurance year has been
established in order to protect the captive companies’ interests and
limit their commitments.
Finally, beyond a certain predefined limit, risk is transferred to the insurance
market.
◗
Civil liability coverage
This programme is intended to cover the Group’s activities against the
financial consequences of its civil liability in cases where the Company
may be held liable for resulting damage and/or bodily harm caused to
third parties.
The limits of its civil liability policy are consistent with those of an
international retail company. Deductibles vary from country to country.
Exclusions in force for this policy comply with market practices.
A specific subscription strategy applies to civil liability risk, through
the re-insurance scheme offered by its captive insurer. The captive
reinsurance company’s exposure is limited per claim and per insurance
year. Anything beyond a certain exposure level is transferred to the
traditional insurance market.
Carrefour group is covered against the risk of harming the environment as
part of its comprehensive, worldwide civil liability insurance programme.
Such risk requires a specially designed approach because of conditions
imposed by re-insurers, which offer more limited coverage for gradual
pollution risk.
◗
Mandatory Insurance
The Carrefour group (delete) takes out different insurance programmes
in accordance with local law, including:
■
automobile insurance;
■
construction insurance (building defects, comprehensive worksite,
ten year builder liability, etc.);
■
professional liability insurance related to its activities:
■
banking,
■
insurance,
■
travel.