The French market and Motor Third Party Liability: 2011 analysis of serious bodily injury compensation

07/2012

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For a number of years, the compensation of serious bodily injury in France has given rise to extensive discussion, without leading to tangible reform. At the request of the Public Authorities, many legal practitioners and professors have contributed to the refl ections of the working groups run by various VIPs.
At the same time, several legislative proposals have been put forward, without the ratifi cation of an offi cial List of heads of damage, an up to date capitalisation scale for future damage, a compensation database or even frame of reference, or other crucial compensation tools.
Completely independently of these issues, law n°2003-495 of 12 June 2003 has had a positive impact on the motor insurance market. The terms and conditions adopted, which aim to strengthen the campaign for road safety led to a reduction in the frequency of road accidents. Nevertheless, despite the lower number of victims, the global cost of compensation for insurers has remained unchanged, due to the increased cost and number of the most serious claims.
In such a context, the absence of a legislative framework, and consequently the absence of tools to help to determine compensation levels, has contributed to a rise in the cost of the most serious bodily injury claims. These are mostly covered by reinsurance, particularly in excess of loss.
We invite you to observe this rise based on the information in our possession. First of all, we will look at the evolution of the cost of claims in the light of the economic and legal situation over the past ten years. After this we will consider certain heads of damage compensated in 2009 and 2010.
 

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