The Group is also developing smaller solar photovoltaic power plants (installed capacity lower than 50 MW) that are widely distributed geographically and thus do not involve high risk. They are covered by policies taken out by the builder and/or the project manager. Several mid-sized power plants (capacities between 100 and 200 MW) currently under development and for which the Group will be either the operator or manager, are covered by appropriate insurance policies.
Solar photovoltaic facilities installed at buildings are also a growth area, particularly at some airports operated by the Group under concession. These facilities have relatively low installed capacities, but require specific assessments to determine the potential fire or waterproofing risks to which they may expose the buildings concerned. Specific insurance coverage is taken out for them.
Concession assets operated by VINCI subsidiaries in France or elsewhere are also covered by specific liability insurance arrangements, which are coordinated with the additional coverage taken out at Group level. These arrangements are specifically designed to meet local legal requirements and those specified in concession agreements. Concession operations in which VINCI is a minority shareholder do not generally benefit from the Group’s complementary liability insurance taken out on behalf of all entities.
Liability relating to the Group’s airport activities is covered by specific airport operator liability insurance programmes:
Subsidiaries are exposed to their liability for bodily, physical or consequential damage caused to third parties, including customers or project managers.
The liability insurance taken out by the Group comprises the primary coverage put in place at the subsidiary level, intended to cover ordinary losses, and additional coverage taken out by VINCI for the benefit of all subsidiaries.
In addition to this basic cover, specific insurance is taken out as a result of legal or contractual requirements or management decisions, particularly in areas such as:
Contractor’s all risk (CAR) insurance is generally taken out for major construction sites. In particular, this covers physical damage arising from accidents or natural events up to the full value of the project.
Office buildings and fixed production facilities are covered for a contractual rebuilding value. Site plant and equipment are covered case by case, based on value, type and age.
Vehicles, which are mostly pooled within fleets by subsidiary, are generally insured only against third parties.
Over the past 30 years, insurers have suffered the constantly increasing cost of events resulting from climate change, and this has led to an increase in the cost of insurance cover for losses caused by natural events, particularly in regions exposed to storms, hurricanes, cyclones and floods. In addition, insurance companies now impose a higher retention rate on policyholders with assets in these regions, via significantly increased deductibles. The VINCI Group has not been exempt from this trend.
In certain, particularly high-impact regions, or regions with a high concentration of insured assets, available insurance capacity has diminished, and this can significantly reduce risk transfer to the insurer. However, at present the Group’s exposure profile does not generally lead to such restrictions.
Over the last few years, risks that insurers previously considered as secondary (forest and brush fires, tornadoes, drought, violent storms, hail) have been contributing significantly to the financial burden of natural events. These secondary risks, which have a very broad geographical distribution, could have an impact on certain Group assets.
Liability insurance
With certain exceptions, climate change has currently had little impact on liability insurance cover.
The VINCI Group has a two-part cybersecurity policy: a prevention part, defined and implemented by the Information Systems Department, and an insurance part.
The Group has a cybersecurity insurance programme covering all its subsidiaries. Levels of coverage depend upon the available market capacity and are evaluated in relation to the risk assessments communicated by the Information Systems Department.
VINCI’s level of prevention is steadily increasing, in line with the constantly increasing demands of insurance companies.
VINCI is firmly committed to ensuring that the Group’s approach to the organisation of risk management and internal control remains one of progress and improvement. To this end, the Group’s Audit Department oversees the work of the community of business line internal controllers, in coordination with the Ethics and Vigilance Department, the Information Systems Department and the Environment and Corporate Social Responsibility departments.
