Insurance of simple risks against natural catastrophe in Belgium

Since 2005 it has been mandatory for insurers to cover natural catastrophe perils where fire cover is provided for ‘simple risks’. This requirement was maintained in the new Insurance Act which took effect from 1 November 2014.

Simple risks are defined as any property or collection of goods where the insurance value is not greater than EUR 1,445,715. A commercial property or collection of goods where the insurance value is not greater than EUR 46,503,833 is also defined as a simple risk if it is one of the following types:

• Offices and dwellings, including apartment buildings or office buildings, to the extent that the area used for commercial purposes is not greater than 20% of the total area of the same floor and the other floors.
• Agricultural, horticultural and viniculture activities.
• Rooms used for the practice of a profession, except dispensing chemists.
• Rooms used for religious activities.
• Rooms used for cultural, social and philosophical activities.
• Buildings used for education, except higher education.
• Music conservatories, museums and libraries.
• Sports facilities.
• Medical facilities including children’s homes and rest homes.

The figures above are index linked and are as at 1 November 2012.

Any syndicate that wishes to write such business either on an open market basis or via a coverholder must contact LITA or Lloyd’s Benelux office before doing so as there are reporting requirements and monetary contributions to the operational costs of CANARA (the Belgium Natural Catastrophe Pool).

For further information on the insurance of Belgium simple risks and CANARA please refer to the class specific regulations section of Crystal.