The Italian insurance group Generali has been present in the Antilles for how long?
Régis Lemarchand: We are there, through our subsidiary GFA Caribbean, which has covered the three departments: Guyana, Guadeloupe and Martinique for more than 50 years. It is a strong company, with committed and talented teams, and very grounded with a local brand and presence. GFA Caribbean operates from the Antilles and Guyana on automobile, health, property damage and even personal insurance risks with Generali Vie. It is a very general company, both in its spectrum of offers and in its means of distribution via general agents, networks of direct employees, brokers or partnerships, with very strong local roots.
Since September 1, Martinique has been going through a major social crisis, while a movement against the price of food was initiated by the Rally for the Protection of Afro-Caribbean Peoples and Resources (RPPRAC). Was Generali impacted by these riots?
Régis Lemarchand: Acts of vandalism, popular movements, riots, it is always very confusing to qualify these events. We were obviously very touched. I had the opportunity to go to Martinique about two weeks ago. We are very worried. We received 70 requests for compensation. There are situations that require us to intervene quickly. This should cost us around 20 million euros. Compared to the mainland, this may seem low but when we reduce this amount to the size of these departments it is extremely high. These are mainly fire disasters. We have companies that have been affected with damage to buildings, contents: machines, products and therefore also consequent operating losses which will be very significant. We also have affected automobiles, but in terms of costs this remains measured.
How did your on-site visit go?
Régis Lemarchand: It is normal for Generali to regularly meet its subsidiary GFA Caribbean, which has 180 employees. We are attentive to the safety of our teams on site. They were also able to continue working with the teleworking means deployed following the Covid period. During my visit, we took the decision, taking into account the local social context, to suspend corporate risk underwriting in the Antilles as we did in New Caledonia. Suspending does not mean terminating contracts, it means not taking on new ones. We need to have more visibility on the social and security context which is worrying. This forces us to take a step back and suspend the underwriting of new business in corporate risks. To exercise, we need a secure environment where there is maintenance of order and social cohesion which allow us to pool risks and cope with hazards.
Riots against the high cost of living in Martinique and Guadeloupe are not a new phenomenon. Why this decision now?
Régis Lemarchand: There are two things that have changed compared to the past. The first is the greater instability of the social context. How to respond and share sudden and violent events? How can we know if their occurrence will resume tomorrow or not? There is a lot of uncertainty on this subject. The second point is the greatest difficulty that we find in exercising our appeals to the State. The preceding events, and since the State’s responsibility was engaged, in particular in a failure to maintain order, we presented and obtained recourse against the State, including in an amicable manner. And he reimbursed us. Today, we have more difficulty obtaining these remedies. We cannot have a shared vision of events and the responsibility of the State and we are increasingly obliged to take legal action. And increasingly these legal actions are difficult to carry out. I have two requests. The first: that the State reaffirms its role in maintaining order and social cohesion. The second: that he honors the appeals that we will present to him without necessarily needing to take legal action. This important question applies to the riots of 2023 in mainland France, New Caledonia and which we will encounter in Martinique.
**How has Generali’s experience in Martinique influenced its risk assessment models and underwriting strategies in other regions facing similar socio-political challenges?**
## World Today News Interview: Generali and the Social Unrest in Martinique
**Introduction:**
Welcome to World Today News. Today, we’re discussing the impact of recent social unrest in Martinique on the operations of Generali, a major insurance provider present in the region for over 50 years. We’re joined by two prominent guests:
* **Régis Lemarchand:** CEO of Generali France.
* **[Guest 2 Name]:** Expert on Caribbean socio-economic issues and political instability.
**Section 1: Generali’s Presence and Impact in Martinique**
**Host:** Mr. Lemarchand, Generali has a long-standing presence in the Antilles through GFA Caribbean. Can you elaborate on the nature of your operations and the relationship you’ve built with the local community over these 50 years?
**Follow-up Questions:**
* How has Generali adapted to the unique needs and challenges of the Antilles market?
* What are some of the key initiatives Generali has undertaken to support the social and economic development of the region?
**Section 2: The Impact of Social Unrest on Generali’s Operations**
**Host:** The island of Martinique has witnessed significant social unrest and riots recently, sparked by soaring living costs. Mr. Lemarchand, you mentioned Generali experienced a surge in compensation requests following these events. Could you shed light on the extent of the damage and the types of claims you’ve received?
**Follow-up Questions:**
* How has Generali responded to the needs of its policyholders during this period of turmoil?
* What measures have been implemented to ensure the safety and well-being of your employees in Martinique?
* [Guest 2]: What broader economic and social consequences do these riots have on Martinique and the region?
**Section 3: The Decision to Suspend Corporate Risk Underwriting**
**Host:** Mr. Lemarchand, Generali has made the difficult decision to suspend corporate risk underwriting in the Antilles. What were the factors that led to this decision?
**Follow-up Questions:**
* How does Generali assess the current security and political climate in Martinique before making such decisions?
* What are the implications of this suspension for businesses operating in the Antilles?
**[Guest 2]:** What are the potential long-term consequences of this decision for the economic development of Martinique?
**Section 4: Seeking Solutions: Collaboration and State Responsibility**
**Host:** Mr. Lemarchand, you expressed concerns about seeking recourse from the State following damage caused during riots. Can you delve deeper into these challenges and what solutions you envision moving forward?
**Follow-up Questions:**
* What concrete steps can be taken to improve dialog and cooperation between insurance companies and the State regarding riot-related damage?
* [Guest 2]: What policies could be implemented by the government to address the root causes of social unrest and create a more stable environment?
**Conclusion:**
Thank you, Mr. Lemarchand and [Guest 2 Name], for your insightful perspectives. This conversation has highlighted the complex challenges faced by businesses operating in regions prone to social unrest, the crucial role of insurance in protecting individuals and communities, and the urgent need for collaborative solutions involving all stakeholders. World Today News remains committed to providing insightful coverage on these pressing issues.
