SCOR Group has welcomed the decision of the Paris administrative court in favour of opening a natural catastrophe reinsurance market in France.
The decision will require the state to “terminate the agreement regarding the state’s guarantee of the Caisse centrale de reassurance (CCR), […] insofar as the CCR’s natural catastrophe reinsurance business is concerned, within one year”.
Failing this, the state must notify the European Commission of the natural catastrophe reinsurance scheme within the same timeframe. The European Commission will then have to rule on the scheme’s compliance with European law.
SCOR suggested that the Paris administrative court decision will lead to improving the service provided to insurers and insureds, and will mobilise additional reinsurance capacity in the face of increasingly significant catastrophes.
In addition, SCOR noted it could reduce the exposure of taxpayers and the state budget in the event of a major natural catastrophe.
