03 Risk management Risk management system 3.1.7 INSURANCE COVERAGE Some risks can be transferred to insurance companies in line with the Group's insurance strategy, with different solutions used depending on the frequency of the risks concerned. To cover high-frequency risks, integrated global insurance programs have been arranged, to the extent possible, in the insurance and reinsurance markets. These mainly concern property & casualty/business interruption, liability, accidental pollution and cyber risk insurance: n the property & casualty/business interruption insurance program provides combined total coverage of €1.5 billion, except for machinery insurance (€750 million) and natural disaster insurance, for which the coverage limit may be lower depending on the country; n the liability insurance program comprises three key coverage areas: l product liability for the manufacturing companies, l business liability for the marketing and services companies, l general business liability, offering direct coverage in European Union countries and countries where the Group operates manufacturing facilities, and umbrella coverage in excess of local cover in all other countries; n a pollution program provides environmental liability coverage; n a cyber risk insurance program covers damages (including additional operating costs) as well as damages to third parties, with a combined limit of €150 million per year. These programs cover all Group subsidiaries. The joint ventures are covered by separate insurance programs that are independent from those of the two shareholders. For companies in which the Group has a non-controlling interest, the majority shareholder is responsible for purchasing appropriate insurance cover. For joint ventures and non‑controlling interests, the safeguard clauses included in the Group's insurance programs protect its interests up to the amount of its investment. The Group’s insurance process includes the use of a captive insurance and reinsurance company, which oversees insurance policy management and reduces costs by pooling risks across the Group. In addition, Michelin is one of the founding members of a mutual insurance company dedicated to covering cyber risks. 159 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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