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Suisscourtage: “The risk of an earthquake is real”

Interview by Milena Radoman

Earthquakes, floods, industrial risks… What insurance should be taken out to protect against these
threats? Laurent Feruglio, Technical Director for Companies at Suisscourtage explains the nature

of the risks and how local companies manage them.

What are the main causes of business Are industrial risks increased in relation to risk in Monaco?
insurance claims in Monaco? the verticality and concentration of industries In Monaco, insurance for earthquakes and their
80% of claims are related to water damage. in the Principality? consequence, tsunamis, is an option to the

There are very few thefts or burglaries. Fires Manufacturing is perhaps made more complex main fire contract offered by the insurer. Most

are rare. Admittedly, when there is a fire, the because it is organized on several floors and manufacturers take this option. Insurers based
damage can be very high for the occupants not on long production lines. But insurers see in Monaco generally offer it, but sometimes
and the building (especially if there is structural an advantage in this: the buildings in Fontvieille oppose the accumulation of risks. That is to say,
damage). The loss in a recent disaster may were designed from the outset for industry, with if an insurer is committed to the total amount des logiciels des compromissions

amount to between 10 and 20 million euros floors and fire doors which limit the impact of risk for an earthquake, it stops underwriting. malveillants sont impliquent le facteur

according to initial estimates for the half-dozen of a fire. In Monaco, building specifications délivrés par e-mail humain

apartments concerned. The stakes are high. are challenging and prevention systems are With global warming, natural disasters will
more effective than elsewhere, with strong- cost more and more. The cumulative number des entreprises

What are the main industrial risks? arm power exerted by firefighters. The recent of claims due to natural events could almost victimes sont

Manufacturing sites are shrinking to a trickle death of a firefighter on duty should serve to double between 2020 and 2050 compared de cyberattaques une entreprise sur des TPE/PME

in Monaco. Logistical constraints are such further strengthen controls. to the period 1989-2019. More than a third depuis le début de la deux est victime Coût médian d’une
that there is no longer any reason to invest in a of the projected increase is due to climate crise sanitaire d'une cyberattaque cyberattaque pour
manufacturing base... The main industrial risks Is there a guarantee fund for natural disasters change. How do you anticipate this? une TPE/PME
are fire and explosion for ATEX zones (explosive (earthquakes, floods, drought, landslides, Globally, droughts, torrential rains and fi res

atmosphere), involving highly flammable or low wave action etc.) in Monaco? related to droughts will double in 20 years.

flash point products (the lower the flash point, No, there is no specific fund and Monaco does Actuaries make models of risks around the
the more flammable the substance) such as not belong to the French regime. world, especially in areas where values are
solvents. This concerns the pharmaceutical, The French regime for natural disasters is concentrated. Insurers draw conclusions, and
perfumery and plastics sectors. funded by an additional premium of 12% which premium rates are adapted according to the
must be paid by each multi-risk policy holder risks and the territories. The risk today is not

What is the procedure for risk assessment? (House insurance, Multi-risk Professional, being able to get insured. The first thing an
We conduct an on-site risk visit and evaluate Industrial Risk, Automobile, etc.). With insurer looks at is the track record. For example,
the industrial process as a whole from the hindsight, I think that if it had to be done again, a factory or a campsite flooded three times in

raw materials used to the finished products, Monaco would benefit from joining it because 10 years is no longer insurable, or only under

the safety measures in place, the company’s it is located in an earthquake zone and more exorbitant conditions. In a few years, perhaps
business continuity or recovery plan, etc. precisely in zone 3 out of 4 on the Munich some insurers will cover street number 8 and
We then present the client with the best Re scale (a reinsurer which has developed not 8b, which is more at risk of flooding...
offers from insurers. Not all insurers cover all specialized analysis tools to map natural
industrial risks or all activities, which reduces disasters). According to its latest report, on a Are floods caused by high seawater waves,
the potential offer. For example, some have global scale, these caused economic damage which are likely to intensify, insured? Are
withdrawn from the chemical sector, others only of 65 billion USD in the first half of 2022, of beach restaurants insured against tsunamis?

cover small industrial risks, or on the contrary which 52.6%, or 34 billion USD was borne by Not unless the sea storm is recognized as
only the biggest ones... It is a “tailor-made” insurers (Editor’s note:). There has not been a a natural disaster by prefectural decree in
insurance market. Each case is unique. In my major earthquake in the Principality since 1887. France. Moreover, 80% of beach restaurants
entire career, I have never seen two factories But the risk of an earthquake is real, and only on the French coast are poorly insured, or not
that are alike, even within the same group! In buildings built since the 1980s having been insured at all. Some insure themselves against
industrial risk, insurance premiums start at designed to meet anti-seismic standards. Some sea storms on the London market.
5,000 euros, with most cases costing between insurers have conducted studies and estimated In Monaco, the vast majority of beach
50,000 and 250,000 euros. It should be noted the risk of collapse is between 10 and 20% of restaurants are not insured against tsunamis. 9 avenue Albert II, Le Copori | 98000 MONACO
that large hotels, hotel complexes and some buildings in the event of a major earthquake. The earthquake premium is more expensive

restaurants - in particular restaurant chains - than the fire premium and represents an annual Tel : +377 97 97 30 20
are treated as industrial risks. How then can we be best insured for this investment of 3 - 5,000 additional euros. contact@monacocyber.mc | www.monacocyber.mc

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