Airbus 2015 Annual Report Download - page 81

AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 49 l
Informationon GroupActivities
Registration Document 2015
1.
1.1 Presentation of the Group
1.1.7 Insurance
The Company’s Corporate Insurance Risk Management (“IRM”)
is part of AirbusGroup’s Global Financial Service Unit. IRM
is an integrated corporate finance function established to
proactively and efficiently respond to risks that can be treated
by insurance techniques. IRM is responsible for all corporate
insurance activities and related protection for the Group and is
empowered to deal directly with the insurance and re-insurance
markets. A continuous task of IRM in 2015 was to further
improve efficient and appropriate corporate and project-related
insurance solutions.
IRM’s mission includes the definition and implementation of
the Company’s strategy for insurance risk management to help
ensure that harmonised insurance policies and standards are in
place for all insurable risks worldwide for the Group. A systematic
review, monitoring and reporting procedure applicable to all
Divisions is in place to assess the exposure and protection
systems applicable to all the Group’s sites, aiming at the:
 continuous and consistent identification, evaluation and
assessment of insurable risks;
 initiation and monitoring of appropriate mitigation and risk
avoidance measures for identified and evaluated insurable
risks; and
 efficient, professional management and transfer of these
insurable risks to protect the Group adequately against the
financial consequences of unexpected events.
The Company’s insurance programmes cover high risk
exposures related to the Group’s assets and liabilities, as well
as risk exposures related to employees.
Asset and liability insurance policies underwritten by IRM for
the Group cover risks such as:
 property damage and business interruption;
 aerospace third party liabilities including product liabilities;
 manufacturer’s aviation hull insurance;
 commercial general liabilities including non-aviation and non-
space product liabilities and risks related to environmental
accidents; and
 Director and officers liability.
Claims related to property damage and business interruption
are covered up to a limit of € 2.5billion per occurrence. Aviation
liability coverage is provided up to a limit of US$ 2.5billion per
occurrence, with an annual aggregate cap of US$ 2.5billion for
product liability claims. Certain sub-limits are applicable for the
insurance policies outlined above.
Group employee-related insurance policies cover risks such as:
 personal accidents;
 medical and assistance support during business trips and
assignments;
 company automobiles; and
 personal and property exposure during business trips.
Amounts insured for such Group employee-related policies
adequately cover the respective exposure.
The Company follows a policy of seeking to transfer the insurable
risk of the Company to external insurance markets at reasonable
rates, on customised and sufficient terms and limits as provided
by the international insurance markets. All insurance policies
are required to satisfy the Company’s mandatory standards of
insurance protection.
However, to be more independent from the volatilities of the
insurance markets, the Company uses the capabilities of a
corporate-owned re-insurance captive as a strategic tool with
respect to the property damage and business interruption
programme and the aerospace insurance programme. The
captive is capitalised and protected according to European
legal requirements so as to ensure its ability to reimburse claims
without limiting the scope of coverage of the original insurance
policies and without additionally exposing the financial assets
of the Company.
The insurance industry remains unpredictable in terms of its
commitment to provide protection for large industrial entities.
There may be future demands to increase insurance premiums,
raise deductible amounts and limit the scope of coverage.
In addition, the number of insurers that have the capabilities
and financial strength to underwrite large industrial risks is
currently limited, and may shrink further in light of new solvency
requirements. No assurance can be given that the Company
will be able to maintain its current levels of coverage nor that
the coverages in place are sufficient to cover the maximum
exposure of the Group.
Financial Statements 2015
11 22 33 44 55
QRegistration Document 2015
Annual Report 2015 Financial Statements 2015
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