AXA to Cancel All High Risk Industrial Insurance Policies
The Financial Times reports that AXA has announced that it may cancel all of its high risk industrial insurance policies in France, because it is legally required to provide terrorism coverage on such policies and reinsurers are not willing to hedge this risk anymore. Subsequent reports indicate that AXA has decided to cancel all of these policies. Other insurers in France are expected to follow this move.
This action is designed to force the French government to step in and provide some guidance and support to the industry. However, the fact that an entire class of insurance is being cancelled in a major industrial country is an important development and ought to concern people who care about financial continuity.