Market overview: Terror & EU law

Swiss Re Nordics Motor Roundtable, August 2018, Birger Joensen - Nordic P&C Claims

London, UK

19 June 2017

London, UK

19 June 2017Nice, France

14 July 2016

Nice, France

14 July 2016

Barcelona, Spain

17 August 2017

Barcelona, Spain

17 August 2017

Paris, France

19 June 2017

Paris, France

19 June 2017

Antwerpen, Belgium

23 March 2017

Antwerpen, Belgium

23 March 2017

London, UK

3 June 2017

London, UK

3 June 2017

Stockholm, Sweden

7 April 2017

Stockholm, Sweden

7 April 2017

Helsinki, Finland

28 July 2017

Helsinki, Finland

28 July 2017

Graz, Austria

20 June 2015

Graz, Austria

20 June 2015

Paris, France

9 August 2017

Paris, France

9 August 2017 London, UK

22 March 2017

London, UK

22 March 2017

Terror attacks with motor vehicles and amok drives since 2015

Berlin, Germany

19 December 2016

Berlin, Germany

19 December 2016

London, UK

14 August 2018

London, UK

14 August 2018

3

Examples of how compensations are funded

• Berliner Weihnachtsmarkt

• Stolen Polish truck

• Casualties and injured people

Berlin attack 19 December 2016

4

Berlin attack 19 December 2016

5

Sources of indemnity;

• MTPL under strict liability regime:

• Perpetrator / driver - Fahrer des Fahrzeugs

• Vehicle Owner - Fahrzeughalter

• Compensation Schemes

• Other sources

Compensations Schemes

• Entschädigung für Opfer von Gewalttaten (OEG)

Act on Compensation for Victims of Violence Article 11(1) states that this law shall not apply to damage caused by an attacker by the use of a motor vehicle or a trailer.

• Verkehrsopferhilfe (Street Victims Protection Fund)

VOH helps road accident victims in its function of Guarantee Fund in the case of accidents occurring in Germany which are caused by unidentified or uninsured motor vehicles or in which the car is used intentionally and unlawfully as a "weapon" or where the motor liability insurer becomes insolvent.

However VHO has very limited resources: 7.5 Mio Euro available for 12 deaths and 56 injured

6

Berlin attack 19 December 2016

Other sources

• 5th Directive and Subrogation right - limited to civil liability

• Public authorities - duty of care, failure to protect

• Polish Traffic Act According to Article 9(2) of the Polish Insurance Law, even in case of intentional acts, the insurance company of the registered car owner has to pay out damages.

7

Berlin attack 19 December 2016

• Since risk of no sufficient cover the German Govermentdecided a special compensation in accordance with the so-called ‚Härteausgleich‘ for person who experience specialhardships

8

Berlin attack 19 December 2016

Overview of MTPL exposure in a number of European

countries

9

... however any MTPL insurer can be

exposed to terror, despite exclusions -

with a little change of circumstances

News from EU - initiative to strenghten protection of victims

of motor accidents

10

• Insolvency of an insurer

• Claims history statements

• Uninsured driving

• Minimum amounts of cover

• Scope

11

• Insolvency of an insurer ………….…… ☺ ☺

• Claims history statements ……….…… ☺ ☺

• Uninsured driving ……………………..….. ☺ ☺ ☺

• Minimum amounts of cover …........... ☺ ☺ ☺

• Scope ………………………………………….. ☺

News from EU - initiative to strenghten protection of victims

of motor accidents

News from EU

12

• UK Motor insurers have voted to mutualise the risks associated with terrorism claims.

• MIB will deal with all third party motor claims where terrorists driving vehicles injure or kill people on or after 1 January 2019.

• The market will continue to fund MIB through a levy

Questions & Comments

14

Swiss Re Nordics Motor Roundtable | 30 August 2018 | Birger Joensen - Nordic P&C Claims

Legal notice

15

©2018 Swiss Re. All rights reserved. You are not permitted to create any modifications or derivative works of this presentation or to use it for commercial or other public purposes without the prior written permission of Swiss Re.

The information and opinions contained in the presentation are provided as at the date of the presentation and are subject to change without notice. Although the information used was taken from reliable sources, Swiss Re does not accept any responsibility for the accuracy or comprehensiveness of the details given. All liability for the accuracy and completeness thereof or for any damage or loss resulting from the use of the information contained in this presentation is expressly excluded. Under no circumstances shall Swiss Re or its Group companies be liable for any financial or consequential loss relating to this presentation.