Companies tempted to insure themselves

“Insurance rates have risen sharply, with increases out of step with the actual risks associated with the business. This pushed us to look for new insurance solutions”explains Christophe Piednoël, spokesperson for the Lactalis group. JEAN-FRANCOIS MONIER/AFP

While prices are soaring, Lactalis, SEB or Bonduelle are covering their own risks.

While access to insurance is becoming more difficult for companies, larger ones prefer to self-insure. Lactalis is the tenth to have taken the plunge by creating a captive in December, an internal reinsurance company within the group, under French law.

Captives, whose regime has just been relaxed, allow companies to build up provisions to cover part of their risks: the most frequent (small claims) or less well covered by insurers. Thus, in the event of a cyber attack, a group is not necessarily insured for the first million euros of losses. It is the captive who covers them. This self-insurance should also help companies obtain more advantageous offers from insurers in a tight market, with soaring premiums. An element that, more than ever, pushes them to look elsewhere.

“Insurance rates have risen sharply, with hikes out of step with actual business risks…

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