Each GAREAT section has its own Annual Aggregate Excess of Loss reinsurance mechanism, although the same principles apply to both sections.

A first (co-reinsurance) layer is “mutualised” between the Members of a same section in accordance with a distribution key which is obtained by expressing the GAREAT premiums ceded by the Member as a percentage of the total premiums ceded to GAREAT by all the Members under the same section.

Above this first (co-reinsurance) layer, several layers are reinsured by international Reinsurers up to the level at which the French State intervenes. The unlimited coverage is granted under a global Stop Loss reinsurance treaty reinsured 100% by Caisse Centrale de Réassurance (CCR). In order to enjoy coverage under this global unlimited treaty, an insurance company must be a Member of GAREAT.   

In contrast, individual unlimited Stop Loss treaties are negotiated by each Member of the “Small and Medium-sized Risks” section with CCR. It is not necessary to be a Member of GAREAT in order to enjoy coverage under these treaties.  

Caisse Centrale de Réassurance’s unlimited treaties only cover losses affecting risks which fall within the scope of application of Article L 126-2 of the Insurance Code. Losses not falling within this scope fall back into the Members’ retention.