GAREAT is a market structure which has been operational in France since 1st January 2002. Its vocation is to manage the reinsurance of the risks of “attacks” and acts of terrorism in France in the name and on behalf of its Members so as to allow them to meet the Property Damage losses arising out of “attacks” and acts of terrorism suffered on national territory, regardless of the country in which the act of terrorism is perpetrated.
GAREAT is composed of two sections: the “Large Risks” section, which includes risks whose sums insured amount to 20 million euros or more, and the “Small and Medium-sized Risks” section, which manages risks with sums insured below 20 million euros.
GAREAT’s Members are French or foreign insurance companies which issue Property Damage policies covering risks situated on French territory.
GAREAT’s fundamentals repose on the principle of “mutuality” between its Members, all of whom are jointly liable with the other Members within a same section, and on the support given to GAREAT by international reinsurers as well as by the French State which provides unlimited coverage to the GAREAT programme via unlimited treaties reinsured 100% by Caisse Centrale de Réassurance.
As a non-profit-making Economic Interest Grouping mandated by its Members, GAREAT returns to the latter that part of the premiums which are not used to finance the reinsurance coverage at the close of each year. Since GAREAT is neither an insurer nor a reinsurer, any necessary equalisation reserves are set up by the Members.