The exclusions imposed by reinsurance contracts push insurers to band together and set up pools to cover specific risks or events: terrorism, nuclear risks, pharmaceutical risks, environmental pollution, etc. These co-insurance or reinsurance pools can benefit from specific reinsurance coverage. Assurpol in France, Perm in Spain, NMP in Holland, Inquinamento in Italy are examples of pools that cover the risks of pollution. Some industries are vulnerable to the development of co-insurance and co-reinsurance pools. Co-insurance and co-reinsurance pools have the advantage of regulating the market and offering a common solution to cover the risks that an insurer cannot assume alone. The debt allocation mechanism in the consolidation agreement and the very high hedging limits that group clubs offer in accordance with group pooling and reinsurance agreements are supported by the IGA, which is an essential element in ensuring mutual trust and cooperation between group clubs and the effectiveness of pooling agreements. It is made up of insurers linked to a transfer contract. When setting up the pool, the related companies determine, among other things, the scope of the agreement, the business class concerned and the capacity granted by each insurer. In France, coverage against terrorism and attacks is mandatory. The Insurance and Reinsurance Management of Attacks and Terrorist Acts Risks (GAREAT) has been offering a solution to this type of risk since 2001.
It meets in a pool of co-reinsurers public and private partners: insurers, reinsurers and the state through the CCR. The pool offers unlimited coverage of one year, possible thanks to a stop-loss contract offered by CCR. GAREAT comprises insurance companies that are members of the French Federation of Insurance Companies (FFSA), the Mutual Pool (GEMA) and foreign insurers operating in France. The Central Reinsurance Fund (CCR), which benefits from the state`s unlimited guarantee for the coverage of natural disasters in reinsurance, plays a key role in this system. It offers market insurers quota coverage. The 50% deduction from insurers is covered by an unlimited stop-loss of CCR. It includes companies that conduct reinsurance operations. The total number of dwellings covered allows Eureko to assess reinsurance needs and thus protect the pool. This one-year renewable coverage is akin to a stop loss contract with a capacity of 1.325 billion euros out of 175 million euros in 2009. A co-reinsurance pool can also be operated on the basis of premiums transferred by each member.