Warsaw International Motor Insurance Forum – 8/9 May Bodily injuries claims development The French experience

Warsaw International Motor Insurance Forum – 8/9 May Summary Bodily injuries claims – The French experience 1.Bodily injuries accident records 2.Current situation 3.French insurers' plans

Warsaw International Motor Insurance Forum – 8/9 May Source : Annual survey on motor insurance (FFSA) Frequency of bodily injuries in MTPL insurance 1. Bodily injuries accident records

Warsaw International Motor Insurance Forum – 8/9 May Trends of bodily injuries compensation Source : Fichier des indemnités allouées aux victimes d’accidents de la circulation (Agira) Salaries index Total compensation average Base 100 in Bodily injuries accident records

Warsaw International Motor Insurance Forum – 8/9 May Share of MTPL insurance costs in 2005 Source : Acam (4 billion €) Bodily injuries from MTPL insurance represent 3 % of motor claims, but 29 % of motor total costs (4 billion €) 1. Bodily injuries accident records Window breakage Others Bodily injuries from MTPL insurance Property damages from MTPL insurance Property damages to vehicles Theft-Fire

Warsaw International Motor Insurance Forum – 8/9 May What is the situation of bodily injury compensation in France ?   Principle : restitutio in integrum – full compensation   2 systems coexisting USA, UK : compensation for full awarded damages Quebec, Sweden : satisfaction of victim’s needs   The French system is hybrid Pecuniary compensation Possibility to re open the file in case of aggravation of the medical condition 2. Current situation

Warsaw International Motor Insurance Forum – 8/9 May What is the situation of bodily injury compensation in France ?   Each year, insurers provide about 6 billion € to bodily injury claims   4.5 of the 6 billion are provided to traffic road accident bodily injury claims   50 % of this amount is provided to severe bodily injury victims 2. Current situation

Warsaw International Motor Insurance Forum – 8/9 May What do we observe ?   A lack of transparency in bodily injuries compensation In medical evaluation Disparate medical missions Different medical scales In the range of compensable injuries No statutory list of compensable injuries Compensation mechanisms Complexity of social organisms recourse 2. Current situation

Warsaw International Motor Insurance Forum – 8/9 May What do we observe ?   An unequal treatment of victims according to the jurisdiction which might be referred to Reasons Nature of the accident : domestic/medical/road/offence Jurisdictional competence : public/private ; North/South/Paris Consequences No mathematic methods to calculate pecuniary damages No logic in personal damages compensation Universal legal insecurity 2. Current situation

Warsaw International Motor Insurance Forum – 8/9 May What do we observe ?   The failure of current bodily injuries compensation to meet severe injured victims’ needs Social and professional rehabilitation Optimization of remaining capacity A support program in a long period time 2. Current situation

Warsaw International Motor Insurance Forum – 8/9 May   First remark : bodily injuries compensation is a social issue   A proposal to reform the current bodily injuries compensation system in order to get more : Transparency Equity Adequate answers to severe bodily injury victims' needs 3. French insurers’ plans

Warsaw International Motor Insurance Forum – 8/9 May Thanks for your attention